The Study of Planning on Individual Trusted Taxation

• Main Authors: Min-Chiu , Chien, 簡敏秋
• Other Authors: Chia-Ying,Ma
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/32512742096672323354

碩士 === 東吳大學 === 會計學系 === 91 === ABSTRACT This idea of a “trust”─a system to manage property for others─came into being pretty early, has been in extensive practice in Europe, the United States, Japan and such advanced nations, and has helped the public create tremendous fortune. With deficient legal authority and immature climate of trust, trusts had been developed at quite a slow pace until the “Trust Act” was promulgated by the government into enforcement on January 26, 1996 and the “Trust Business Law” was further put into enforcement on July 19, 2000. To help assure sound and comprehensive legal authority, the Executive Yuan (the Cabinet) has enforced the Trust-oriented taxation laws, notably Income Tax Law, Inheritance Tax Law, Gift Tax Law, Land Tax Law, Land Ownership Equality, House Tax Statute, Deed Tax Statute as well as VAT Law, seven in total since July 1, 2001. Now, the frameworks of the trust systems have been roughly completed and have received mounting concern. Business concerns in the field have joined the efforts the assess the trust effectiveness and feasibility. The entire trust market gradually smacks of a mounting boom. The present essay probes into the origin, development of trusts as well as the theories and principles of trust-oriented taxation with an extensive collection of literatures related to trust systems as well as the trust-oriented taxation which are assembled, reorganized, analyzed and compared. To have the theories and practice combined into a whole, the study aims at the individual property transfer in the country in case study coupled with planning of the trust contracts in an attempt to offer the referential models of verification of taxation planning so that individual trust will get sound, justifiable and lawful development. Through the probes into case taxation planning, the current essay notices: (I) Trusts might not necessarily be the optimal choice in terms of tax conservation alone. (II) Taking tax conservation as the final policymaking process, it should take into account the cases from establishment, existence till extinguishment, all taxes payable in all phases instead of a certain tax categories. Only through such efforts can comprehensive planning become possible. (III) Tax saving does not represent the key function of trust and must not mislead the planning in trust which might overlook the actual function of trust. Through theories in line with case analysis, the present study yields the conclusions, notably the following: I. That gift tax be levied for the entire interests on the grounds of trust, with inheritance tax levied upon the beneficiaries on the death taking place during the existence of trust. All taxation grounds should be converted for the current values on the compound interest rates. Planning of the trust not overall trust interests might save gift tax and inheritance tax. II. The following factors should be taken into account in the individual trust planning: (I) Death of a beneficiary during the trust duration. (II) Other interest oriented trust upon the real estate will make deductions of the land value increment tax and deed tax impossible. (III) In cases of other interest oriented trust upon land as the real estate, the land value increment tax related issues should be taken into account upon land transfer and extinguishment of trust. (Ⅳ)In will-oriented trust, the special legal reserve could not be excluded out of the successors. KEYWORD：Trust，Individual trust，Taxation Planning，Self interest trust， Other interest oriented trust，Will-oriented trust，Trust Systems，Trust-oriented Taxation System， Trust Planning，Tax Saving