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The study aims to examine factors that affect the back tax amount of the non-profit Organization income tax by focusing on nonprofit entities registered in Taipei City as the subject by gathering nonprofit entities’ reconciled income tax declaration data from 2005 to 2009 using the multivariate regression model.
The factual validation findings show that CPA-audited declaration cases tend to have a greater back tax amount when compared with general declaration cases, and that broaching form CPA-audited declarations, the performance on back tax audit by written review is deemed best, while the back tax amount is unaffected by the accounting method; however, the disclosure on auxiliary operating organizations does bear a significant correction to the back tax amount.
Having established the theorem, non-profit organizations are recommended to step up their in-house accounting personnel’s core skills by diligently reviewing the nature of income and truthfully declaring it by upholding the principle of income pairing with cost expenditure. In terms of the audit agency, it is recommended that the audit agency is to review the case selection criteria on nonprofit entities by stepping up mandated disclosures at reconciled declaration; furthermore, an interactive linkup with competent government authorities can help to effectively monitor nonprofit entities’ status, together with formulating a set of designated nonprofit entity audit criteria, with which to mitigate disputes between the tax collection agency and the remitter.
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