Economy

Tycoon’s estate to pay largest inheritance tax ever

• Publication Date：01/18/2010
• Source： Economic Daily News

The inheritance tax imposed on the estate of business tycoon Wang Yung-ching will surpass NT$10 billion (US$308 million), the highest in the nation’s history, according to an official with the Ministry of Finance.

The official noted that the Taipei National Tax Administration under the MOF has recently completed its review of the inheritance tax filing made by the surviving family of Wang Yung-ching, founder of Taiwan’s Formosa Plastics Group.

The “management guru of Taiwan” left behind over NT$60 billion in assets, the official said.

After taking into account the right of Wang’s widow to claim half of the estate and various other exemptions and deductibles, a total of over NT$20 billion will be subject to a 50-percent inheritance tax, bringing the total inheritance tax owed to more than NT$10 billion.

It will be difficult to surpass the record set by Wang, given the fact that he was the richest man in Taiwan and that the inheritance tax has been drastically cut from 50 percent to 10 percent, the official said.

Had the Wang family been able to file using the revised tax code, they would only have to pay NT$2 billion in inheritance taxes. However, since Wang died on Oct. 15, 2008, before the new law took effect Jan. 23, 2009, his estate will still be subject to the 50-percent tax rate, the official said.

The Taipei National Tax Administration will soon send a payment notice to the Wang family, requesting that the tax be paid within two months of receipt of the notice.

According to sources familiar with the issue, 80 percent of Wang’s wealth was in the form of stocks, worth roughly NT$50 billion. Other assets under his name include several pieces of land and golf club memberships. (SFC-HZW)