Case Study on Estate and Gift Taxes and the(Related) Enterprises’ Capital Investment in Taiwan

• Main Authors: Ching-Tyan Lin, 林慶田
• Other Authors: Jiuh-Yang Jean
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/80899568970825115443

碩士 === 中原大學 === 會計研究所 === 89 === Since a lot of people do not quite understand the rules of estate and gift taxes so far. Thus, there are conflicts between tax bureau and taxpayers on the inappropriate tax planning，illegal tax evasion and severe audit procedure. It is controversial that whether tax system is fair and reasonable enough to average social wealth, especially on the enterprises’ capital investment. Due to the complexity in valuation and fairness in taxation, the auditors and the taxpayers are confused and disputing. When taxpayers apply settlement against tax liabilities, after the 1995 reform, there are allowed to settle the taxed target or other liquidated or storable estate against tax liabilities. But it raises another problem such as overstating the value，liquidity and disability to sell out the estate at auction. Due to the tax auditors’ principal of taxation with love and improving service, it is effective to propagate the knowledge of tax saving. This study probes on three aspects: tax evasion,settlement against tax liabilities and tax planning。Furthermore，it hopes to eliminate taxpayers’ doubt on these three aspects. Due to the development on information technology, the convenience in reserving and transmitting tax data，and the collection of individual property and income data, tax auditing has become much easier. Therefore it is not easy to evade tax. Tax auditors’ competence and audit skills are remarkable. The settlement has its defect on liquidation，overstating value, and mortgaging on poor stock. Thus， it affects the national treasury. The effective rate of the estate and gift taxes is only 5% because of the politics involved to increase the exemption and the tax credit. It also reduces tax and suspicions the fairness of taxation. Exemptions on reservation for public facilities and settled real estate from regulation of the new town development are government’s device to reduce remonstrance while levying real estate. The fund after the levy is not applied to the exemption. It is criticizing whether the real estate is taxable or not under the estate and gift tax if the taxpayer died before the levy. This study suggests that:（1）The tax bureau should enforce the propaganda on tax education to make sure the taxpayer understand tax rules and eliminate tax evasion.（2）Those with constructive gift tax could diminish their penalties if they do tax return within the notification period. But it is manipulated to shirk the penalties and ruins the fairness.（3）The understated bulletined land value and overstated stock value are inappropriate and tax bureau should adopt the market price to value these assets.（4）The tax credit and exemption of the estate and gift taxes should not be compromised.（5）The exemptions on the land for agricultural purpose，the reserved land for public facilities and the settled real estate from regulation of the new town development are criticized. This study suggests the tax bureau could adopt the Tax Rule of Land. （6）The tax bureau should list a reference to regulate the ratio for various assets to settle against tax liabilities. Therefore it could avoid the loss of the national treasury and conform the public fairness.