A Study of the Taxation of the Expenditures for the Life Support of Dependents and Relatives: A Harmonization of the Provisions under the Civil Code and the Tax Law

• Main Authors: Yi-YanLu, 呂怡燕
• Other Authors: Ke-chung Ko
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/64k8u7

碩士 === 國立成功大學 === 法律學系 === 102 === A Study of the Taxation of the Expenditures for the Life Support of Dependents and Relatives: A Harmonization of the Provisions under the Civil Code and the Tax Law Yi-Yan Lu Ke-Chung Ko Department of Law, College of Social Science SUMMARY The exemption for dependents is one of the important taxation in Income Tax Law. There are two main purposes of it. One is for protection of the right to exist provided in Constitution of the Republic of China (Taiwan). Another is to maintain the equality among all tax payers. But the problem is the definition of dependents in Income Tax law that doesn't include the people with right to claim their relatives maintaining their lives provided in Civil Code. This thesis sets three phases to solve the problem. The purpose of the first phase is to point out the deficiencies of the exemptions for dependents in Income Tax Law. Secondly, we will focus on the amounts of exemptions for dependents. Finally thesis try to rebuild the taxation of exemptions for dependents. Through literature analysis and induction, this thesis will try to rebuild the taxation of exemptions for dependents meeting the Ability to pay principle based on the conception of the actual-paid maintenance fees and the relationship between the people with maintenance rights legally and the liable relatives. Key words: Maintenance obligation, exemptions for dependents, Ability to pay principle, tax unit, protection of the right of existence, deduction. INTRODUCTION To protecting the right of existence and the right to equality, taxation of exemptions for dependents is provided in Income Tax Law. But the dependents in Income Tax Law are not equal to the people with maintenance rights legally in Civil Code. The difference leads to two results against the purpose of taxation of exemptions for dependents: some with maintenance obligation legally can’t exempt the fee of maintaining their relatives; meanwhile some may get too much exemption owing to the extent definitions of “dependents”. MATERIALS AND METHODS This thesis is mainly through literature analysis and induction, the relevant literature domestic textbooks, academics books, journal articles, master's thesis, etc. After collected, making research and analysis on issues related to dependent relatives expenses incurred on civil law and tax law. Supplemented system and legislation of Germany as a research method of comparison, hoping through literature analysis and comparison of foreign law system, and then complete the construction of our relatives exemptions for dependents system. The thesis collects the related information, then organizes, summarizes, discusses them. Finally the thesis makes a conclusion and some suggestions. RESULTS AND DISCUSSION This study sets three phases to solve the problem. The purpose of the first phase is to point out the deficiencies of the exemptions for dependents in Income Tax Law. So we will compare the range of the people with maintenance rights legally in Civil Code with the definitions of dependents in Income Tax Law. Secondly, we will focus on the amounts of exemptions for dependents. As above we said, “exemptions for dependents” is a kind of legal system to protecting the right of existence. Besides, the public assistance is also the one protecting the right of existence. These two different kinds of legal systems both involve the amounts of one person’s basic living fee. Principally the amounts of one person’s basic living fee should be the same, but in fact the amounts of the lowest living index in Public Assistance Act is different from the amounts of exemptions for dependents in Income Tax Law. Which one is enough to achieving the purpose of protecting of existence? It’s the key points we will discuss in the second phase. On the last phase, we will try to rebuild the taxation of exemptions for dependents meeting the Ability to pay principle based on the conception of the actual-paid maintenance fees and the relationship between the people with maintenance rights legally and the liable relatives. CONCLUSION This thesis first suggests that Taiwan Income tax should abolish merger notification system of dependent relatives. When return to personal declaration unit, tax burden does not because of combined reporting increase. Secondly we will try to rebuild the taxation of exemptions for dependents meeting the Ability to pay principle based on the conception of the actual-paid maintenance fees and the relationship between the people with maintenance rights legally and the liable relatives. Finally by discussions and suggestions herein, achieve the ideal of promoting fairness and justice in terms of taxation practices, and obtain propose feasible suggestions as a reference that applies to the practices.