The Research of Undistributing Profit Tax

• Main Authors: Hsing-Jung Tsai, 蔡幸容
• Other Authors: Pro.Hsin-Fu Tsai
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/84954521109811380114

碩士 === 淡江大學 === 會計學系 === 89 === After intense discussion about the imputation system, concerning the consideration of the wishes by the people, increasing the incentive of investment, prevention of double taxation, etc, the integrated income tax has been implemented since 1998 In order to reduce the impact of the shortage of tax revenues, and to encourage enterprises to distribute the dividends, however, the after tax earnings derived from a company shall incur a 10% surtax if not distributed in the then current year. Although the integrated income tax can avoid double taxation, the method of implementation of surtax on undistributed earnings is engendered criticism. By concluding different viewpoints of the scholars, accountants, tax officers, and businessmen, this paper tries to look for any improvement. The questionnaire of this study was designed by means of taking all proposals from the interested parties and collecting data about all the problems that developed during the implementation of the imputation system. According to the statistics analysis, we can identify the differences and concurrences of the thoughts that have reflected by distributing the questionnaire to the scholars, accountants, tax officers, and businessmen. Following are the findings from this survey：1.Imposing on the retained earnings may force enterprises to distribute earnings. While, instead of increasing tax revenues, the tax burden of enterprises increased. Experts and tax officers believe that the increase of tax revenues is less than the increase of cost burden of the enterprises. 2.For capital intense and hi-tech industries, allowing investment credit against surtax of undistributed earnings will affect the fairness of taxation.3.Owing to the complicity of the system, it is a tough work to calculate and file the surtax of undistributed earnings return.4.For most of the people who are not familiar with this system, it seems unreasonable to impose penalty for the omissions in reporting.5.Concerning the improvement of undistributed earnings surtax, more people tend to support the “Cancel undistributed earnings surtax and increase profit-seeking enterprises income tax to 30%”. It is also acceptable for“ Allow enterprises to retain certain earnings without distribution to shareholders. Only levy the surtax on the excess amount of the retained earnings ”. Enterprises are in favor of “Allow enterprises to retain certain earnings without distribution to shareholders. Only levy the surtax on the excess amount of the retained earnings ”. This certain amount of earnings is retained no more than the enterprise receipt capital. Scholars and tax officers are tend to support the “Cancel undistributed earnings surtax and increase corporate income tax to 30%”. Accountants are in favor of “Instead of tax accounting, assessment of 10% surtax should be base on the definition of finance accounting ”.In reality, the definition of undistributed earnings is deferent between tax accounting and finance accounting. The idea of taking the definition in finance accounting as the tax base, in general, got very positive support. However, the support is about 50% or less by tax officers while looking into the difference item by item between current tax regulations and finance accounting.