Related Parties and the Need to Bridge the Gap between the Income Tax and Transfer Tax Systems

37 Pages Posted: 3 Aug 2014 Last revised: 17 Dec 2014

See all articles by Jay A. Soled

Jay A. Soled

Rutgers University

Mitchell M. Gans

Hofstra University - School of Law

Date Written: August 1, 2011

Abstract

Related parties can readily manipulate transactions in ways that unfairly reduce their tax burdens relative to unrelated taxpayers. In the income tax arena, Congress has instituted numerous legislative measures to safeguard the tax base from related-taxpayer manipulations; yet, the same developed system of related-party safeguards does not extend to protect the transfer tax base. This analysis points out that this disparity has had a corrosive effect on the integrity of the transfer tax system. Indeed, insofar as the treatment of related parties is concerned, Congress should employ the same level of scrutiny and circumspection in the realm of transfer taxes as it does in the income tax. Reform of the transfer tax system is accordingly in order.

Keywords: Tax

JEL Classification: K34

Suggested Citation

Soled, Jay and Gans, Mitchell M., Related Parties and the Need to Bridge the Gap between the Income Tax and Transfer Tax Systems (August 1, 2011). 62 Alabama Law Review 405 (2011), Hofstra Univ. Legal Studies Research Paper No. 2014-19, Available at SSRN: https://ssrn.com/abstract=2475104

Jay Soled (Contact Author)

Rutgers University ( email )

1 Washington Park
Newark, NJ 07901-1825
United States
(973) 353-1727 (Phone)

Mitchell M. Gans

Hofstra University - School of Law ( email )

121 Hofstra University
Hempstead, NY 11549
United States
(516) 463-5876 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
32
Abstract Views
497
PlumX Metrics