The expanded paper review system associated with tax evasion

• Main Authors: Hsu,Chiu-Hua, 許秋華
• Other Authors: Lee,Chuan-Ching
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/82423168388503030942

碩士 === 銘傳大學 === 會計學系碩士在職專班 === 104 === The implementation of Expaned Paper Review System(EPR) for the assessment of Profit-seeking Enterprise Income Tax of the Small and Medium Enterprises (SMEs) in ROC is in order to decrease the audit cost and to ensure the tax revenues. However, in actual siuation, many SMEs do not keep accounts based on real transaction facts because of the cost. Due to EPR, the tax authority assesses the taxable income of enterpirses on the basis of the profit standard and revenues of enterprise's accounts in stead of enterprise's real profit, which has been giving rise to a lot of tax evasion over the past 40 years. This study uses Taiwan’s business income tax returns data of 2011-2012,which filed and assessed balance statement of SEMs registated in Taipei city and Tobit model to investigate whether EPR and other tax evasion factors will affect the underreporting of income. Our findings indicate that the influence of different kinds of tax returns and whether checking or not on income underreporting by SEMs are significant positive. Statistics evidence also shown that other factors such as industrial code filing wrongly, incomplete accounting and certificates, whether financial statements attested by CPAs, which are all related to tax evasion. But there is not a significant positive correlation between tax authorities employ some audit indicators and where tax evasion for which applying EPR to tax return.