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Study on the Right of Transferring Business Tax of Package Contracting Businesses-Focusing on Judicial Yuan Interpretation No. 688
Package Contracting Businesses,Judicial Yuan Interpretation No. 688,Time Table for the Issuance of Sales Certificate by the Business Operators,The Principle of Equality,Indirect Tax,The Rights and Interests of Transferring Business Taxes,
|Publication Year :||2019|
The nature of the business tax is consumption tax, the purchaser should be the taxpayer originally. However, based on the economic considerations of tax collection, its tax object is changed from 'expenditure' to 'sale', and the seller becomes the taxpayer. Therefore, the business tax is designed to be an indirect tax model. Through the mechanism of transfer, the final consumer becomes the person who ultimately bears the tax, so that the taxation result is in line with the ability-to-pay principle. However, in the process of multi-stage sales, if the business cannot pass the output tax to the buyer, it must bear the additional business tax burden, and the legislative intent that business tax is a consumption tax will be violated.
The petitioner of Judicial Yuan Interpretation No. 688 is a firm that belongs to package contracting industry. According to the provisions of 'The timetable of business operator’s issuance of sales certificates'under the Value-added and Non value-added Business Tax Act (hereinafter Business Tax Act), the regulation on the timeframe for package contracting businesses to issue sales certificate is “at the time a receivable payment is due in each period under the construction agreement”. And that time is earlier than the actual receipt of payment. Compared with the labor contracting industry, whose sales certificate is issued at the time of collection, the former obviously bears stricter business risks. In the event that the account cannot be successfully recovered, the tax cannot be transferred, and the Business Tax Act does not provide any remedy for the business operator, which not only places the package contracting business operators in a more unequal position than other business operators, but also impairs their property rights.
The study analyzes the situation of bad debts of business operators from the applicable regulations of accounting standards, Income Tax Act and Business Tax Act, respectively. It is found that: when the accounts are not recoverable, due to its industry characteristics, the business operators of the package contracting business encounter the following two difficulities : (1) The time limit for issuing sales certificate in the Business Tax Act is not based on the cash basis, and (2) when a business operator has a bad debt, both the Business Tax Act and the Income Tax Act adopt regulations that are more unfavorable to the business operator. Under the interaction, the slightest affects the company's performance, and the serious one may affect the company's survival.
Therefore, the study carefully examines the Judicial Yuan Interpretation No. 688. In addition to the analysis of the results of its constitutional review, it also conducts an in-depth analysis of the “Guidelines for the Application of Tax Refunds by the Package Contracting Business Operators” published by the Ministry of Finance to cope with the requirement of Interpretation No.688 and the the subsequent practical opinions of Administrative Court’s in order to understand whether the right of transferring business tax of package contracting business operators has been better protected. Unfortunately, the analysis shows that the practical difficulties encountered by the package contracting business operators have not been improved. Therefore, the thesis finally proposes the amendment of the relevant provisions of Business Tax Act and its sub-laws, and hopes to implement the system justice and ability-to-pay taxation objective of the business tax.
|Appears in Collections:||科際整合法律學研究所|
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