Can the principle of cost minimization take priority over securing the reliabity of tax policy?
Su Yeon Jung, Larry Clark
Big Data automation techniques is problematic in the property tax system. Due to the impossibility of perfect modeling and the difficulty of reflecting constantly-changing real estate market factors in models, linear assumptions should be carefully considered before modeling regression analyses. In the interests of cost minimization, Korean government decided not to use appraisers and the Three Methods of Appraisal in its residential property tax system. In Korea, data and technology have replaced appraisal experts. Have the results been positive or negative? The study examines the dangers and anticipated outcomes of focusing on administrative cost-minimization in the property tax system. Inaccurate data results in poor policy choices that ultimately distort the fairness of taxation. It also discusses the Jeju Provincial Government’s awareness of this problem and alternative solutions for dealing with it.
Event: Land Governance in an Interconnected World_Annual World Bank Conference on Land and Poverty_2018
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