An Analysis of Wealth Planning after New Tax Law

• Main Authors: Li-Pei Ko, 柯立培
• Other Authors: 邱顯比
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/78096639630447752579

碩士 === 國立臺灣大學 === 財務金融學研究所 === 99 === In 2008, before the Financial Tsunami rattled the whole world, the company I worked for was luckily sold to the world famous portal site, Yahoo, Taiwan branch. The income from sold equity generated high taxes. During the tax year of 2009, I personally paid the tax amounting to a number in 8 digits. For one night, I became the payer of the highest individual income tax in the year. The huge number of taxes made me realize the important of financial management and tax saving. Providing paying taxes is a citizen’s obligation and Taiwan’s tax system also tries to align with international standard, it’s sensible for the high income, or high net worth population, such as billionaires to notice the issues of better management of their financial situation and efficient enhancement on investment profits while saving taxes legally. The key point of this study is to integrate individual income, expense, and tax to an accounting concept of profit and loss statement. If an efficient allocation of assets can be done initially, it’s possible to maximize the income. On the other hand, as the way capital market treats the listed company, they focus on the actual income after tax. It’s important to save taxes in a legal way. Therefore, we discuss the spirit and concept of alternative minimum tax launched in 2006 to connect with international standard, which includes more taxed conditions, such as life insurance, annuity, unlisted stock income, and non-cash donation deduction etc, even the overseas income that is considered in the alternative minimum tax. After the reduction in estate and gift tax in 2009, the capital that originally stayed overseas returned back to domestic market. Therefore, we introduced a series of investment masters’ theories, such as Markowitz’s theory as a basis for demonstration of maximizing asset allocation income while increasing efficiency of investment through portfolio theory. In the aforementioned preconditions, including maximizing efficiency of asset allocation, we also consider tax system, including alternative minimum tax and the change of estate and gift tax. We try to analyze the acceptance of different populations with different personalities to risks through the perspective of financial management and undertake a few case studies for stable and aggressive styles. After setting conditions and simulating calculations, in addition to considering the actual situation after the tax system was amended, we developed a study basis for this thesis. The channels for tax saving are being cut down each year. Since the alternative minimum tax was established in 2006, the original methods widely adopted by high net worth population to save taxes have been mostly blocked. After the government amended tax rules, there’s an urgent need for everyone to better manage tax saving in a more spontaneous way.