A Study on the Alternative Minimum Tax of Individual Income Tax

• Main Authors: Yi-Chun Chan, 詹益群
• Other Authors: Li-Hua Kao
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/30891806805571597400

碩士 === 中原大學 === 會計研究所 === 94 === In June 2005, Former Minister of Finance, Lin Chuan, publicized the data of tax collection from high-income citizens. According to the 2003 data, among the top 40 high-income earners with an annual income of over 300 million NT dollars (approximately 10 million US dollars), 8 of them did not pay tax, 7 paid less than 1% of total income for tax, and only 4 of them paid tax properly as required. The news aroused a wide spectrum of opinions. Thus, the Basic Income Tax Code (Alternative Minimum Tax) was successfully passed. In the alternative minimum tax (AMT) system, the total income includes a general net income, specific insurance payment, transactions of TSE (OTC) listed securities in custody, non-cash donations, bonus earning (present value minus face value), and offshore incomes. The minimum tax is derived by deducting 6 million dollars from the total income and multiplying it by 20%. The minimum tax will be compared with the regular tax, and taxpayers have to pay the highest one. The researcher proposed that in addition to the 5 items listed above, cash donation and the income tax for transactions of TSE (OTC) listed securities should also be included. Thus, a questionnaire was designed for the scholars offering tax related courses in universities, staffs in charge of income tax in tax administrations, staffs in securities and stocks companies, and accountants in the top 4 accounting offices to collect the primary data of the alternative minimum tax. A total of 210 copies of valid samples were collected, and the valid response rate was 38.67%. The research result showed that over 75% of the interviewed agreed on the AMT's inclusion of specific insurance payment, transactions of TSE (OTC) listed securities in custody, non-cash donations, bonus earning and offshore income, indicating the consideration of the Ministry of Finance is generally accepted by the public, and there is still room for improvement. Based on the empirical results presented in Chapter 4, the researcher proposed short-term and long-term goals of the alternative minimum tax system as a reference of law enactment for the administrators (Ministry of Finance, Department of Economic Affairs, Financial Supervisory Commission, and other financial institutions).