An Empirical Study for Factors of the Individual Income Tax Refund in Taiwan
| Autor: | Chi-Hui Chang, 張綺慧 |
|---|---|
| Rok vydání: | 2013 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 101 The individual income tax is a major source of tax revenue in Taiwan. According to the statistics on individual income tax between 2007 and 2011, showing that the ratio of the number of tax refund filing to the total declaration filing cases averages to as high as 47.63%. An excessive number of tax refund cases not only add to the taxation collection cost but can also trigger poor public perception. Besides, whether the inappropriate formulations of the withholding rates or inappropriate withholding procedures are the major reasons of resulting in a large number of tax refund cases? Or is it a result stemming from the amount of the imputation credit arisen from the imputation system? The study is focusing on the individual income tax declaration filings and assessed information between 2007 and 2009 by taxpayers registered in New Taipei City as the study samples, one of the purposes of this study is to investigate whether the taxpayer’s total income amount, income transactions, and effective tax rate, etc. are the major reasons leading to excessive number of tax refund cases? Another purpose is to explore whether individual income tax refund cases stemmed from the withholding tax and the amount of the imputation credit. And the final is whether the choices between standard deduction and itemized deduction have effect on the tax refund cases. The findings derived from the empirical study are: 1. The total income amount and effective tax rate are negatively correlated to the formation of tax refund cases, and of which the total income amount is found with greater impact, meaning that the lower the total income amount, the more likely tax refund cases will result; 2. Also the withholding tax or the amount of the imputation credit for all types of income is positively correlated to the tax refund cases, and that the amount of the imputation credit under the imputation system and the withholding tax of income from lease have the higher impact on the formation of tax refund cases; in other words, the higher the amount of the imputation credit and the withholding tax of income from lease, the more likely tax refund cases will result; 3. As to the choice of itemized deduction, which is negatively correlated to the tax refund cases, meaning that when choosing the standard deduction, the more likely tax refund cases will result. Based on findings derived from the empirical study, it is recommended that the imputation system adopting a complete imputation credit method ought to be amended, and lowering the withholding rate on income from lease deductible to 5% (which is currently at 10%) is deemed more appropriate while comparing with the present level of effective tax rate. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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