A study on the deduction of unpaid debts for estate tax evasion-an application of the logit model

Authors: Tsoyu-Calvin Lin; Cheng-Feng Chen;

Journal:Chia Da Management Review. Dec. 2005, 25(1): 205-229.

Keywords: Estate Tax; Tax Evasion; Logit Model

Abstract:
This study collects the data of declaring estate taxes over $NT50 million dollars with unpaid debt from the National Taxation Administration of Central Taiwan. The Logit model is employed to determine factors that may significantly affect the behavior of estate tax evasion. Results show that loan amount, the period between the date of loan origination and death, and the amount of cash withdrawal are significant factors in determining estate tax evasion. Results of this study may enhance the scrutiny efficiency of taxation authorities.