In December 2010 the Treasury Department presented a proposal contain-ing change in regard of current endowment assurance laws and an alterna-tive way of saving financial instruments called Investment Savings Account. The purpose of the proposal is to make investing in financial instruments easier for private investors and to prevent reigning tax evasion regarding endowment assurances. The objective of this thesis is to determine if the proposal will have the desired effect of making investments in financial in-struments easier for private investors. The purpose is also to determine whether the changes imposed by the proposal are relevant and adequate. The proposal suggests that the Investment Savings Account should be sub-jected to flat-rate tax instead of taxation on capital profit upon divestment of financial instruments, which is the case today. By doing this the investor does not have to calculate expenditure costs of investments making declar-ing tax return to the Tax Agency easier. The proposal also includes change regarding endowment assurance laws stating that deposits and withdrawals should affect the capital base of the assurance preventing tax evasion. Fur-thermore the proposal suggests an elevation of tax on endowment assur-ances conform to the tax-rate of the Investment Savings Account. The proposal shows good intentions since the Treasury Department has ac-knowledged that something has to be done concerning taxation on capital. However, the execution is in some areas quite poor. Excessive measures are taken in comparison to what is achieved. Calculations are complicated, mak-ing capital profit and taxation unpredictable for private investors. Elevating taxation on endowment assurances within a Swedish tax system which is al-ready high might impede the financial market.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hj-15209 |
| Date | January 2011 |
| Creators | Ternström, Pontus |
| Publisher | Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Rättsvetenskap |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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