| Summary: | 碩士 === 中原大學 === 會計學系 === 88 === The Extant Expended Paper Review (EPR) has been widely known as a loophole in the business income tax system. However, our statistic shows that near seventy percent of enterprises in Taiwan have used this approach to apply for business income tax for the past 20 years. From the prospective of tax equity, the questions of abolition or revision of the EPR are often raised by academic scholars, experts from Ministry of Finance and accountants.
In my study, first, the background of EPR is summarized. Second, the legality of EPR is a simple and convenient approach for certain taxpayers and it helps to release the audit burden of national tax administration offices. However, both of accounts and tax auditors concern that general accepted accounting system is negligent by the small and medium-sized enterprises. Besides the probability of existing sampling after EPR are as low as one percent, the business has high incentive to use EPR. Therefore, in the short run, the government may consider to impose more stringent conditions on who uses the EPR. Especially, the licensed accountant is a necessary representative when EPR is used. In the long run, accountant and tax auditors expect the abolition of EPR may not reduce the tax revenue. We encourage the licensed accountants to help the small and medium-sized enterprises set up the general accepted accounting system. The government needs to promote the taxation education in order to reduce the gap of recognition of tax law between the government and taxpayers. The tax auditors should be objective and the pressure of their job performance should not conflict with the benefit of taxpayers. In that way, the labor and time-consumed by tax appeals and litigation process will be greatly reduced.
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