ME  Vol.1 No.1 , May 2010
Is it Rational to Minimize Tax Payments?
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.

Cite this paper
nullA. Loffler and L. Kruschwitz, "Is it Rational to Minimize Tax Payments?," Modern Economy, Vol. 1 No. 1, 2010, pp. 47-50. doi: 10.4236/me.2010.11004.
References
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[2]   M. Jonas, A. Löffler and J. Wiese, “Das CAPM mit deutscher Einkommensteuer,” in German, Die Wirtsch- aftsprüfung, Vol. 57, No. 17, 2004, pp. 898-906.

[3]   H. M. Markowitz, “Portfolio Selection,” The Journal of Finance, Vol. 7, No. 1, 1952, pp. 77-91.

 
 
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