A Research on the taxation of Nonprofit Organizations in the United States and Taiwan

• Main Authors: Lee, Tung-Shun, 李統順
• Other Authors: Lin Suming
• Format: Others
• Language: zh-TW
• Published: 1997
• Online Access: http://ndltd.ncl.edu.tw/handle/50857636119051867403

碩士 === 國立臺灣大學 === 會計學系 === 85 === Nonprofit organizations are known as the third sector or the independent sector. They exist in every part of our lives and provide a lot of servicesor functions. Recently, there have been many demerits happening in nonprofitorganizations. Therefore, this study suspects that The Standard for NonprofitOrganizations Exempt from Income Tax has some drawbacks and needs to be corrected. Based on this motivation, this study compares the taxation of nonprofit organizations in R.O.C with that in foreign countries. The conclusions derived from this study can be described as follows:1. The Standard for Nonprofit Organizations Exempt from Income Tax is too simple to regulate nonprofit organizations. The Standard may make reference to the spirits of the U.S. Internal Revenue Code and define the varieties, purposes of foundation and the tax calculation method of nonprofit organi- zations in detail. It should try as hard as possible to take all foresee- able circumstances into consideration and regulate them in advance.2. The income tax law should be modified to include the trade or business income of nonprofit organizations into the scope of taxable income.3. Because the definitions and concepts in The Standard for Nonprofit Organizations Exempt from Income Tax are prone to be disputable, this study suggests the definitions of The Standard for Nonprofit Organizations Exempt from Income Tax should be modified.4. In order to prevent the capital of nonprofit organizations from flowing back to the donors'' business and unfair competition, this study suggests that we should prohibit nonprofit organizations from holding a significantly influential amount of stocks of the invested company. At the same time, the investment projects of nonprofit organizations should be filed to the administrations for approval to avoid high-risk investments.5. In order to prevent nonprofit organizations from getting involved in lobbying and political campaigns, this study suggests that these lobbying and political campaign expenses should be classified into unrelated expenses, and that nonprofit organizations can only undertake lobbying and political campaign within limits.6. According to the rules of the Departemt of Treasury, some nonprofit organi- zations are exempted from filing an annual information returns. To achieve the goal of maintaining tax equity and keeping th tax data accessible, these regulations should be abolished.7. The kinds of nonprofit organizations aren''t classified clearly, and the the supervision and management principles of nonprofit organizations don''t have uniform standards. This study suggests the administrations should search for the related data of nonprofit organizations, and put them into files. At the same time, the administrations should adopt uniform supervison and management principles, and announce related data of nonprofit organizations to the public regularly.8. In order to increase the efficiency of the tax administration, the Departemt of Treasury should stipulate the auditing principles of information returns of nonprofit organizations as soon as possible. Simultaneously, the Department of Treasury should cooperate with the Financial Accounting Standard Board, R.O.C., to establish the accounting and auditing principles of nonprofit organizations.