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Chapter Law Content

Chapter 5 Payment
Article 42
In the event that the decedent has failed to file a declaration or has filed an incomplete declaration for the property requiring a declaration by the Act and where the decedent meets the situation described under Paragraph 1, Article 7 of the Act, the beneficiaries shall be held liable for said failure to file a declaration or for the shortage or omission in the declaration and shall be responsible for making the tax and interest payment in proportion to the property they have each received provided the payment is within the total taxable estate or gift amount .
Article 43
(Deleted)
Article 43-1
The taxed property located in the ROC as referred to in Paragraph 4, Article 30 of the Act shall mean the property included in the total taxable amount of the present estate or gift which is located in the ROC according to the Act and with an estate or gift tax already levied thereupon.
Article 44
The lands reserved for public facilities included in the estate of a decedent eligible for an estate tax exemption pursuant to Article 50-1 of the Urban Planning Act, the taxpayer may apply for paying estate tax in kind using the said property.
Where the beneficiary of a gift is also the taxpayer as described under Paragraph 1, Article 7 of the Act, the taxpayer may apply for paying gift tax in kind using the reserved lands for public facilities included in the property received that are eligible for a gift tax exemption pursuant to Article 50-1 of the Urban Planning Act.
Except for the lands which were owned by the decedent or the donor before being designated to be reserved for public facilities, or the lands which were transferred to the decedent or the donor because of inheritance after being designated to be reserved for public facilities with no records of transfer of ownership other than by inheritance during the period from the date of designation and the date of transfer, the amount of estate tax and gift tax payable which may be offset by the lands reserved for public facilities as mentioned in the preceding paragraphs shall be subject to limitation calculated as follows:
The limitation of tax payable which can be offsetted by the lands reserved for public facilities = The estate tax or gift tax payable based on the Act × (the value of the public facilities reserved lands surrendered for tax payment ÷ the total amount of the estate or gift assets)
Article 45
In case that taxpayers apply for paying the estate and gift tax in kind according to the provisions under Paragraph 2, Article 30 of the Act, the taxpayer shall submit a list of all the surrendered properties within the specified time period for tax payment to the competent tax authority for approval. The competent tax authority shall conduct a survey and deliver its decision within thirty (30) days of the receipt of the application.
If properties surrendered for payment in kind do not meet the conditions set out under the provisions in Paragraph 2, Article 30 of the Act, the competent tax authority shall immediately issue a notice to the taxpayer stating clearly the reasons for rejecting the application and requesting tax payment within the original time limit specified. In the event that the delivery of said rejection notice to the taxpayer has passed the original time limit specified or is less than ten (10) days to the due date of the original time limit, the competent tax authority shall allow a period of ten (10) days as of the date of notice delivery for the taxpayer to make the tax payment.
In the event that part of the properties surrendered for payment in kind are in violation of the provisions of Paragraph 4 of Article 30, the competent tax authority shall notify the taxpayer to pay in cash for the part of noncompliance.
Article 46
The value of properties surrendered by taxpayers for estate and gift tax payment, being part of taxable estate or gift in the ROC, shall be determined according to the value of the estate or gift tax levied upon the property concerned.
Where said surrendered property is a depreciative or depletive property, the depreciation or depletion amount accrued during the period between the date of inheritance or gift and the date of in-lieu tax payment application shall be deducted; where other rights have been established thereon, the value of said rights or the amount of debts guaranteed shall be deducted.
Where such other right is a mortgage and the debtor has repaid the guaranteed debt after it had been used for tax payment, thereby resulting in a tax payment value in excess of the original tax amount, the provisions under Paragraph 1 of Article 48 shall apply mutatis mutandis.
The value of properties surrendered by taxpayers for estate and gift tax payment, being property other than taxable estate or gift, shall be based on the date of in-lieu tax payment application and relevant provisions concerning estate or gift valuation shall apply mutatis mutandis.
Article 47
If the properties surrendered for tax payment are lands or buildings, the competent tax authority shall identify all other payable but unpaid taxes attached thereto and require the payment of all such taxes concurrently.
Article 48
In the case of surrendering property for tax payment, if the value of said property is lower than the tax payable, the taxpayer shall pay the difference in cash upon filing the application for payment in kind; if the value exceeds the tax payable, after the surrendered property has been liquidated, the amount of refund shall be calculated based on the net receipt from the liquidation multiplied by the ratio of the part in excess of the tax amount to the total value of said property and the taxpayer shall be notified within one (1) month of the completion of said liquidation transaction for the collection of said refund.
The net receipt from the liquidation under the preceding paragraph means the balance of total receipts of disposal after deduction of all taxes, charges, management and disposal fees.
For the part requiring cash payment according to the provisions under Paragraph 1 and under Paragraph 3 of Article 45, the taxpayer may apply for an installment payment according to Paragraph 2, Article 30 of the Act.
Article 49
Where the competent tax authority has approved the use of lands, buildings, or other objects for tax payment, the taxpayer shall submit relevant documents or properties to the competent tax authority within thirty (30) days of the receipt of the approval notice for processing of tax payment in kind.
In case that the property for paying estate tax in kind is jointly owned by the heirs in common under the preceding paragraph, the following documents shall be presented:
1.Inheritance registration and transfer registration application forms.
2.A letter of consent to surrender the properties for estate tax payment signed by the heirs under the provisions of Paragraph 7, Article 30 of the Act; in the event of waiver of the right of inheritance, a certification from the court shall be attached for reference.
3.The ownership certificate of the land or building, or the document of proof of other properties, or the property to be surrendered for tax payment.
4.A letter of affidavit signed by the heirs under the provisions of Paragraph 7, Article 30 of the Act, stating that if the government should announce expropriation of the land surrendered for tax payment before the completion of the registration to transfer the land into national property, the compensation thus paid for the land price shall be collected by the National Property Administration, Ministry of Finance.
5.Other required documents pursuant to relevant rules and regulations.
In case that the property for payment in kind owned by the taxpayer is other than those assets listed under Paragraph 1, the following shall be submitted:
1.The transfer registration application form.
2.The ownership certificate of the land or building, or the document of proof of other properties, or the property to be surrendered for tax payment.
3.Other required documents pursuant to relevant rules and regulations.
Article 50
In the event that the taxpayer has failed to deliver all the relevant documents required for property right transfer registration or the properties to be surrendered for tax payment to the competent tax authority within the time limit specified in the preceding article, the provisions under Article 51 of the Act shall govern. The same shall apply to cases where the difference between the in-lieu tax payment and the tax amount payable is required to be paid in cash.
Article 51
The properties approved by the competent tax authority for estate or gift tax payment and those with unpaid taxes attached thereto as set forth in Article 47 shall be transferred into national property under the management of the National Property Administration, Ministry of Finance with the ratios allocated to municipality, city,hsiang (township, city) and the long-term care service development fund established in accordance with the Long-Term Care Services Act according to the Act Governing the Allocation of Government Revenues and Expenditures and Article 58-2 of the Act clearly indicated. Where the payment in kind is land reserved for public facility, and the land is located within the municipal, city, or hsiang (township, city) to which allocation of the tax revenue is attributable, according to the ratios allocated, the land shall be transferred into national, municipal, city, and hsiang (township, city) properties, respectively.
Objects used for tax payment shall be disposed of as early as possible. The receipts obtained during the period between acquisition and liquidation of such objects and the amount gained from the disposal shall be split between governments of different levels according to the statutory allocation ratios and the long-term care service development fund established in accordance with the Long-Term Care Services Act. The taxes and duties, charges and fees, management fees, and disposal fees thereto attached shall be paid by the management authority of the property using the income such property has produced or the amount gained from liquidating or selling said property to tenant farmers for payment.
Article 52
(Deleted)
Article 52-1
The tax payment guarantee as referred to under Paragraph 1, Article 41 of the Act shall mean the guarantee provided in accordance with the guarantee requirement specified under Article 11-1 of the Tax Collection Act.
Article 53
Where the estate or gift tax payment certificate has been issued by the taxation authority, any stakeholder may apply for the issuance of a copy of said certificate. The same shall apply to the re-issuance of estate or gift tax exemption certificate, transfer agreement certificate, estate tax exclusion certificate, and gift tax exclusion certificate.