Tax Reform and Tax Evasion: Evidence from Estate and Gift Taxes of Taiwan

• Main Authors: Chen, I-Chin, 陳宜津
• Other Authors: Hung, Fu-Sheng
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/386ska

碩士 === 國立政治大學 === 行政管理碩士學程 === 106 === The government of Taiwan implemented estate and gift tax reform to create a tax-free environment for light taxation and attracting citizens to redirect their overseas investment back to Taiwan. This law amendment was promulgated on January 21, 2009, in which the maximum tax rate in “The Law of Estate and Gift Tax" is reduced from 50% down to 10% and the amount of tax exemption is increased. After 9 years of implementing, the purpose of this thesis is to study whether or not the tax reform has reduced the tax evasion of the corresponding taxes. We collected data of 5-district National Tax Bureaus of Taiwan from year 2004 to 2016. Using panel regressions, we find that, in term of estate taxes, the reform successfully reduces tax evasion. However, in terms of gift taxes, the tax reform has no significant effect on tax evasion. We discuss some possible reasonings behind our findings.