법인과 조세제도

Abstract

The Government submitted the amendment draft of Commercial Law in 2008 to introduce Limited Partnership and Limited Liability Company. This is for the respond to the changing economic circumstances and the needs of new corporate entities which fit for the small company especially. On the other hand, the Partnership Taxation which will become effective on Jan. 1, 2009 was introduced to the tax law. The traditional structure for taxing income divides into two main classes - the individual income tax and the corporate income tax. The individual income tax is one level of tax, and the corporate income tax is two levels of tax. The traditional explanation for the original adoption of a corporate income tax is that developments in entity theory led Congress to consider the corporation, but not the partnership, as a taxpayer or "entity" separate from its owners. However, entity theory is not fit for the taxing income earned by legal entity. The main reason for taxing income earned by legal entity is the convenience. That is, the corporate income tax was thought to be a necessary mechanism for enforcing a comprehensive scheme of individual income taxation conveniently. Therefore, entity theory should be abandoned in the income taxation. Thus, Introduction of partnership taxation system is a landmark in the history of our income taxation system. This responds to the change of economic environment. A partnership serves as an conduit between a business and its owners, so the partnership entity is not taxed directly. However, that partnership taxation was introduced in the special tax treatment control law does not suit the taxation system because a pass-through taxation system is always not profitable for the partners. The main reason the conduit theory was adopted in the income tax law is taxing partners of entity like partnership under civil law directly in the economic substance. So, partnership taxation should be prescribed in the individual income tax law and corporate income tax law.