The Empirical Analysis of the Incentives of Estate Tax Evasion in Taiwan

• Main Authors: Shu-Jung Hsu, 徐淑容
• Other Authors: Ming-Hung Yao
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/10966772657521621455

碩士 === 國立高雄應用科技大學 === 財富與稅務管理系碩士在職專班 === 102 === Taiwan changed the progressive estate tax system with a 50% top tax bracket to a flat tax rate of 10% in 2009. It also increased the estate tax exemption from NTD 7,790,000 to NTD 12,000,000. The purpose of this study is to investigate the incentives of evading estate tax after the tax reform. This study applies the logit regression model to analyze the estate tax cases assessed by the National Taxation Bureau of Kaohsiung in 2011 and 2012. The empirical results show that the gross amount of estate, investment amount of estate and whether a transfer occurred within two years before death are significant determinants to estate tax evasion. This study suggests auditing cases with high gross estate value, high investment amount, and a transfer occurring within two years before death. Meanwhile, insurance is a commonly used tool in tax avoidance or tax evasion. This study further suggests the government create an insurance database for the purpose of estate tax auditing in order to reduce tax collection costs and to achieve tax fairness.