The purpose of this thesis is to consider the adoption of minimum tax provision which can provide the useful information to the users of tax reports. Tax preferences cause differential treatment among taxpayers having the same amount of income, thereby creating horizontal inequities in the tax system. To mitigate the inequities caused by tax preferences, The Korean Goverment introduces the minimum tax provision in 1991. Therefore, minimum tax provision reveals the conflicting aims of equity and tax incentives. The objectives of this thesis are: 1. To indicate the extent to which the minimum tax provision reduce the horizontal inequities that are present in Korean Tax System. 2. To make recommendation regarding the minimum tax provision and 3. To demonstrate the effect of the recommendations upon the impact of the minimum tax provision.

The purpose of this thesis is to consider the adoption of minimum tax provision which can provide the useful information to the users of tax reports. Tax preferences cause differential treatment among taxpayers having the same amount of income, thereby creating horizontal inequities in the tax system. To mitigate the inequities caused by tax preferences, The Korean Goverment introduces the minimum tax provision in 1991. Therefore, minimum tax provision reveals the conflicting aims of equity and tax incentives. The objectives of this thesis are: 1. To indicate the extent to which the minimum tax provision reduce the horizontal inequities that are present in Korean Tax System. 2. To make recommendation regarding the minimum tax provision and 3. To demonstrate the effect of the recommendations upon the impact of the minimum tax provision.

Minimum tax provision, Tax preferences, Tax incentives