| dc.description.abstract | The global operations and capital management of Taiwan businesses are influenced by geopolitics. In addition, the surge of anti-tax avoidance (ATA) and anti-money laundering (AML) measures, such as the common reporting standard (CRS) and the economic substance legislation in tax havens, has promoted tighter regulations on corporate taxation by the international community, and more strictly controlled accounts for offshore companies in banks. In June 2019, the Asia/Pacific Group on Money Laundering (APG) released its preliminary report grading Taiwan the best level of “general tracking”, which shows Taiwan′s commitment and efforts to combat money laundering. Adding to the flames, Taiwan businesses have seen an apparent cross-border flow of offshore capital and the decline of early adopters of the accounts for offshore companies.
In order to address the need of Taiwan businesses to repatriate their funds to Taiwan, the government officially announced the bill on the fund repatriation and deposit in foreign exchange deposits on 15th August 2019. Therefore, this study focuses on asset-allocation methods of Taiwan businesses before and after the announcement of the bill and conducts qualitative research on four cases, namely, Taiwan manufacturers, young doctors, first-generation traders, and second-generation Chinese manufacturers. Based on the background analysis of different client cases, we understand the needs and objectives, and then through the assessment, we plan the framework and formulate the solution. Among them, young doctors, first-generation traders, and second-generation Chinese manufacturers are the cases after the promulgation of the bill on the fund repatriation and deposit in foreign exchange deposits; while Taiwan manufacturers are the clients before the promulgation of the bill, and they use the accounts for offshore companies to allocate their assets. Lastly, we conduct customer interviews and summarize their feedback to discuss the authentic feedback from the clients, and through the case planning we put forth the conclusions and suggestions.
In conclusion, we analyze the suitability of the bill on the fund repatriation and deposit in foreign exchange deposits and ＂OBU account＂ respectively. As stated by the former clients and for the reference of the asset allocation records, it is true that after the introduction of the bill the tax preference has made the clients more willing to repatriate funds from overseas to Taiwan. In the asset allocation of overseas funds, in addition to assisting clients in the application, it is also necessary to pay attention to the provisions of tax laws and consider the structure and risks of financial products.
With respect to the suggestions on the direction of further researches, this study proposes that long-term observation should be made on the implementation of the bill on the fund repatriation and deposit in foreign exchange deposits to explore whether it can truly meet the needs of the clients, banks, industries and the government. In this way, we will have a more complete research as far as the results are concerned.
Keywords: repatriation of overseas funds, overseas assets, accounts for offshore companies, asset allocation | en_US |