고용형태 변화에 따른 근로소득공제 개선방안

Abstract

The income tax law classifies an income by setting up a premise that taxable capacity differs according to the nature & generation aspects of incomes, and sets the calculation method according to incomes, and applies the taxation method differently hereunder. Particularly, the current income tax law has a structure where the handling process in taxation is greatly influenced depending on whether it’s an earned income, or a business income. This study examined the necessity of having to improve the handling & influence in taxation in a situation where a distinction between an earned income and a business income is becoming somewhat blurred according to the recent change of employment relations from the three aspects as follows: First, this study raised a problem caused by reliance on interpretation of tax law due to the lack of a concrete criterion of a clear definition of the significance of an earned income, or a division of earned incomes. According to a precedent, it prescribes the decision on whether or not an income belongs to an earned income through overall consideration of the situation on supply of labor, but a dispute is brought about due to the ambiguity in the application of the situation on supply of labor to actual labor relationships, and therefore, there is a limit in applying the nature of a traditional earned income intactly to a new form of employment. Hereupon, it’s necessary that relative authorities should set up a criterion encompassing a new form of employment while reducing the room for an argument by having regulations in related legislations instead of putting a basis of judgment of an earned income on tax law interpretation. Second, earned income deduction is known to have the nature of interest equivalent adjustment as to withholding tax, adjustment of a gap of the income identification rate, adjustment of taxable capacity, and deduction of estimated expenses, etc. This study intended to deduct the problem of, and plan for the earned income deduction system by attempting at verification of such natures. As a result of examination, In earned income deduction, there is hardly any meaning of withholding tax interest equivalent, or gap adjustment of the income identification rate, and there is no need to acknowledge the adjustment aspects by other incomes and taxable capacity as the elements in earned income deduction because income classification is becoming blurred according to diversification of employment forms. Accordingly, it’s reasonable to consider the nature of earned income deduction as having the nature as estimated deduction in order to acknowledge necessary expenses in respect of an earned income. Third, this study proposed the introduction of the real amount deduction system first as an improvement direction of earned income deduction. To be more concrete, this study proposed that a wage earner should obligatorily choose between estimated deduction and real amounts of expenses by transitionally adopting Japan’s specific expenditure deduction system for the purpose of introducing a full-scale real amount deduction system. This study maintained that there should be a drastic cut in the amount deducted from earned incomes because the proportion of necessary expenses in total amounts is considerably high within the present system in comparison with that of foreign countries. In addition, this study proposed that the upper limit should be set up rather than acknowledging a worker’s earned income amount deducted belonging to the necessary expense without restrictions. This aims to realize fair taxation through taxable income calculation by reflecting the economic real condition where it is becoming difficult to make a distinction between the earned income and business income.