| Summary: | 碩士 === 逢甲大學 === 財經法律研究所 === 94 === The increasingly expending measures of tax benefit in Taiwan are currently vacillating the financial status of the government. The reason for this vacillation is because tax benefit has always been one of the important instruments that the government applies to get in with capitalists or voters in expectation for a continuously developing economics and for assuring the ruling power. It is really hard to repeal tax benefit in such a situation where elections are taking place unceasingly. When considering both fair taxation and votes, the latter is always taken into first consideration, thus leading the former to be ignored. Besides, due to the policy characteristics of tax benefit, the policy is easily approved but hardly repealed. In order to prevent tax basis from being corroded and tax system from becoming deteriorated, we really should undergo a review on tax benefit. This research intends to study on whether tax benefit finds in violation of the Constitution based upon the nature of its tax system.
Therefore, this research can be divided in several parts:
1. Clarifying the quality of the principle of fair taxation and tax benefit
Since the principle of fair taxation originates from the Constitution’s principle of equality, we should start from knowing well the concept of general principle of equality for reviewing the principle of fair taxation. In addition, such review steps should agree with the ones that are applied when the principle of equality serves as the review standard. For economic development and social welfare, the present society, in view of the possibility of tax implementation, usually adopts discrimination measures on tax law, which is called “tax benefit” in this research. However, what is the limit of this “controlling and inducing work that exercises the act or omission on the specific taxpayers” in respect of the Constitution? As this research can’t analyze all sorts of tax benefits, its study scope is limited to each benefit of tax reduction and exemption from tax benefits, taking income tax as the main study subject. Such ideas are herewith explained in advance.
2. Steps for judicial review of the principle of fair taxation
Can the principle of fair taxation provide with more concrete criteria in addition to embracing the general requirements of the principle of equality? What review steps should be applied to inspect whether tax benefit is unconstitutional or not?
3. Application of fair taxation in tax benefit
Does the discrimination of tax benefit, especially on the income tax exemption of taxpayers, conform to the principle of fair taxation? This research takes the principle of fair taxation as the standard and establishes the steps that tax benefit applies in judicial review. First of all, this research studies on whether tax benefit should be restricted by ability-to-pay principle? Whether tax benefit should go through judicial review? If it should, what are the review criteria? The research undergoes such review by the above-mentioned criteria and review steps of the principle of fair taxation. However, due to the distinct nature of tax benefit, such nature should also be studied via the review steps drawn up in this research during the review procedure. Tax benefit has various patterns; nevertheless, this research can’t analyze one by one but choosing the most representative cases for study among the benefit of tax reduction and exemption of tax benefit.
The review procedure suggested by this research is as follows:
(1) Review of the principle of equality
This research intends to find out the essential factors that make the discrimination treatment of tax benefit become reasonable and what the purpose of its legislation is. According to the basic rights in which concrete cases get involved, this review is to decide which review standard will be applicable. As to this tax benefit, the research suggests to apply the principle of proportionality to precede the review on it.
(2) Patterns of tax benefit
In case of tax benefit, which serves as an economically auxiliary means to achieve economic goals, ability-to-pay principle is inapplicable and should de discarded while principles of benefit, need as well as public welfare become applicable for the case. Besides, different concrete criteria can be applied because of the patterns of tax benefit.
(3) Review of the principle of proportionality
Does tax benefit result suitable without exceeding the principle of proportionality that it should possess under the inspection of suitability, essentiality and the narrow principle of proportionality?
4. This research subsequently introduces the application and the regulations of the newly approved Alternative Minimum Tax in Taiwan, which is called formally Income Basic Tax Act. In addition to examining the tax reduction and exemption of the income tax by the principle of fair taxation, this research also talks about the system of the inheritance tax in Taiwan by the same means.
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