Economic Analysis of the Possibility of a Tax on Bank Deposits

Subject Areas : Journal of Investment Knowledge

Khosro Faghani Makarani ¹ , keramat olah Heydari Rostami ² , Vahid Amin ³

1 - Assistant Professor, Faculty Member of Islamic Azad University of Semnan Branch [e-mail]
2 - PhD student of Accounting, University of Mazandaran
3 - faculty member of PNU Tehran

Received: 2016-03-09 Accepted : 2016-05-10 Published : 2016-09-22

Keywords: Tax, Deposit, interest, Money, Banking system,

Abstract :

In recent years, the debate over taxes on deposits or it’s profits, each time has been seriously attacked by the newspapers and news agencies. These criticisms and objections, although do not support with the scientific and practical evidences, but official authorities always and quickly deny it. They believe that negative real interest rates on bank deposits in recent years and negative effect of tax on those rates is cause of evasion and movement of funds from the banking system to non-productive markets. This research is based on theoretical analysis; First it informs taxation’s proofs with logical evidences, Then surveys proofs of critics and rejects them. In this paper, We will prove the necessity of being accessible and easier tax on deposits, then we will deny capital and deposits flighting of the banking system. In this research, money is like blood in the body and financial system specially banks is a blood’s circular system and capitals get banks off when money destroy, hoard or go abroad.

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