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Is it Rational to Minimize Tax Payments?
Universit?t Paderborn, Lehrstuhl für Finanzierung und Investition, Paderborn,Germany
- 1 Universit?t Paderborn, Lehrstuhl für Finanzierung und Investition, Paderborn,Germany
- 2
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Abstract
The opinion is occasionally voiced that investors should avoid paying tax at all costs. In this paper it is being investigated, using a simple portfolio model with taxes, whether avoiding tax really leads to more µ-σ-efficient solutions. It is demonstrated for four different concepts of tax-minimising policy that they are a far cry from an efficient solution.
KeywordsDecisionTaxesCAPMTax-CAPM
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