| Summary: | 碩士 === 國立政治大學 === 會計研究所 === 93 === An income tax system is composed of two different elements. One is the normative tax structure necessary to implement a normal tax and the other is the special preferences that departure from the normative tax structure.
The term “tax expenditure” refers to departures from the normal tax structure designed to provide benefits to specific industry, group or activity by relieving their tax obligations.
Tax expenditures are always excluded form traditional budget and not known in advance by the public, so these tax concessions should be considered as an “off budget” expenditure or indirect spending. In contrast, the standard government budget process is open and completed by monitoring and controlling in the government’s comprehensive annual budget report.
Under the former, the purpose of tax expenditure report is to provide a useful tool in managing and controlling the governmental budget as direct spending to the administrative and legislative department.
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