Purpose and Concept

Starting from year 1990s due to the stagnancy of the domestic real estate development, the civilian is accustomed to purchase the house auctioned by the court, in fact more and more people keep the court-auctioned houses as their first choices for real estate procurement. That is the reason why the auction industry has very good business. Along with the increasing rate of house vacancy, the practice of court-auction house becoming the best way to integrate the real estate industry. From year 1999 Kuan-Pin Company starts its planning and preparation, and in August 2000 the Kuan-Pin Company was duly established.

In recent years, along with the macro changes of domestic market structure and investment environment, the traditional business has less and less chance for and little and little margin of making profit. Moreover, time is very precious in the modernized society, therefore people are not willing to spend much time to in the business which they are not specialized in. Hence, specialized court-caution network emerged to meet their requirement. The purpose for the establishment of Kuan-Pin Company is to provide the specialized real estate investment service by its aggregated expert talent, specialized professional skill and cooperative teamwork spirit, by its multiple information channels and comprehensive price evaluation, by its felling of the market pulse and catching of the market feature, by its preparation of the proper strategy and execution of high efficiency, and by its global and advanced investment plan and integration.

The detailed-planned, correct-decided, quick-responded and perfect-managed real estate management enterprise must rely on the abundant information and high technology. With its past over-20-years experience of real estate promotion and its unique view on the overall tendency about the real estate industry, Kuan-Pin Company raised the concept of information concentrated on the building appearance pictures, and decided to shoot the pictures for the appearances of all the buildings in digital camera, combined with the description of actual address and features by cooperation with all the local land management organizations, so that all the real estate buildings could have their complete real estate reports.

To make the real estate industry more rationalized and popularized, Kuan-Pin Company will make every effort to expand its participation in the real estate investment so as to make full use of the minimum finance and achieve the maximum profit and come to a result of win-win situation between the Kuan-Pin Company and the customers. It is expected that Kuan-Pin Company will definitely play an important roles in the real estate industrial field in the era of broadband technology and internet network.

According to its past long-time experience in real estate promotion and as intermediary agency, Kuan-Pin Company understands that most of the information about real estate business is not true but always just in formalism, the agreed price and sold position are not easy to be obtained. Therefore, Kuan-Pin Company decided to establish the real estate network from the point of court-auction house.

Company Organization

At present stage, Kuan-Pin Company has staffs and workers over 100 persons in its following one section and three departments for the categorized and professional work:

Taipei Headoffice

Information Section: 33, Tienmu North, Shihlin District, Taipei

For the construction, development and maintenance of information system as well as provision of court-caution information.

Development Department: 33, Tienmu North, Shinlin District, Taipei

For the development of pluralistic business.

Business Department: 1F, 33, Tienmu North, Shihlin District, Taipei

1F, 219, Mingte Road, Taipei City

For the current court-auction and real estate development and related business operation.

Allograph Department: 33, Tienmu North, Shihlin District, Taipei

For the business of allograph to current court-auction, real estate and related business.

Kaohsiung Branch

Allograph Department:

8F-1, 47, Chingnien 2 Road, Lingya District, Kaohsiung City.

Information & Business Department:

11F-2, 79, Chunghua 3 Road, Chienchin District, Kaohsiung City.

Land Agent, Intermediary and Business Department:

1F, 34, Yihua 3 Road, Sanming District, Kaohsiung City.

Land Agent, Intermediary and Business Department:

339-7, Section 2, Kuangfu Road, Fengshan City, Kaohsiung County.

The above departments are mainly for the court-auction, information, real estate and related business information and allograph work.

Pingtung Branch

Land Agent, Intermediary and Business Department:

512, Chiennan Road, Pingtung City.

The above department is mainly for the court-auction, information, real estate and related business information and allograph work.

Scope of Business

The core business of Kuan-Pin Company is the investment to court-auctioned real estate. However, it will extend its business scope on the attitude of continual improvement. The current business scope of the company is:

1.The court-auction real estate investment

2.The court-auction house agent and bank caution-house financing

3.The provision of integrated information of bank overdue-loan house and court-auction house and inherited house

4.The provision of digital pictures to all the road and buildings in Taipei City and Taipei County

5.The provision of court-auction house pictures

6.The provision of integrated system to court-auction information and past knock-off results

7.The provision of court-auction house duplicate certificate and layout drawing

8.The provision of regulation rules on land sales tax, land procurement tax, personal income tax, inheritance tax and bestowal tax

9.The professional real estate evaluation

10.The participation of court-auction investment analysis report preparation

11.The application agency to bank financing

12.The building decoration and maintenance

13.The consultation on real estate and related legal affairs

14.The building ownership registration

15.The provision of court-auction membership service

16.The provision of website configuration technology and software as well as hardware service

17.The network programming and information integration

18.The cooperation with the leaguer websites (www.1111.com.tw, www.map.com.tw, www.land.net.tw, www.tradevan.com.tw)

Features of Auction-House Investment

Comparing with other investment ways, the court-auction house investment is with the following features:

1. High-Profit: Different case and different house will has different right and responsibility, therefore has different profit rate. However, generally speaking, the profit rate in court-auction house investment is much higher than ordinary investment ways.

2. Short-Period: The court-auction house can be easier to be sold with certain profit due to its low purchasing cost comparing with ordinary real estate.

3. High-Risk: The high-profit of operating 100% business with only 20% money requires professional and comprehensive knowledge in the sophisticated operation of court-auction house investment.

4. Currency-Revaluation: The court-auction house investment is with the ability of value maintenance and even value appreciation.

5. Low-Doorsill: The court-auction house investment is without any qualification requirement but just small amount of operation money.

6. Good-Information: The court-auction house investment requires certain specialized channel to obtain the related market information.

7. Continuous-Prosperity: The court-auction house investment will not be influenced by the macro economic status but just requires comprehensive analysis, prudential evaluation and timely action of sale and purchasing, then rich profit can be achieved.

Road Land Business

Advantage of Road Land Purchasing:

1. Can offset the whole amount of inheritance tax with the object

2. Can reduce the taxable amount of personal income

3. Can reduce the taxable amount of corporate business tax (the amount donated to government can be listed in the corporate business operation cost and loss statement)

4. Can exchange with other high-value real estates

5. Can be listed in the corporate fixed estate (the best way to be used in preparing the corporate balance sheet)

6. Can be applied with the construction land to minimize the applied construction land area but actually increased the construction land area

7. Can offset the bestowal tax when bestowed on the taxable bestowee.

The Legal Basis

1. Article 30 and Article 16.2.12 of ¡§Bequeathal Tax Act¡¨ and Article 44, 46 and 49 of ¡§Bequeathal Tax Act Implementing Rules¡¨

2. Subarticle 1.2 of Article 17.1.2.2 of ¡§Income Tax Act¡¨ and Article 25 of ¡§Income Tax Act Implementing Rules¡¨

3. Subarticle 1 and 2 of Article 36.1 of ¡§Income Tax Act¡¨ and Article 42 of ¡§Income Tax Act Implementing Rules¡¨

4. Article 50.1 of ¡§Urban Programming Act¡¨, Article 194 and 199 of ¡§Land Act¡¨ and Article 35 and Article 47.2.1.2 of ¡§Average Land Right Act¡¨

5. Article 44.2 of ¡¨Bequeathal Tax Act Implementation Rules¡¨

Typical Example of Road Land Purchasing

(1) The donating of land confirmed by municipal governmental official letter: the recorded publicly announced current value of donated land

(2) Publicly Announced Current Value x 40% ¡÷ to offset the total amount of income tax.

For example: The donated value is NT$ 100,000,000 ¡÷ x 40%: to offset 40 million.
Cost: 100,000,000 x 15% = 15 million
Profit: 40 million - 15 million = 25 million

For example: Net saving tzx 2 million to buy land with public announced value of 5 mullion:

Cost: 5 million x 15% = 0.75 million

Profit: 2 million ¡V0.75 million = 1.25 million

Without buying land but return the seller land cost 0.75 million by divide in halves system¡A

Saving tax in half: 1.25 million ¡Ò 2 = 0.625 million

Lessened Profit: 1.25 million - 0.625 million =0.625 million

Typical Case Analysis

A. Loss of Father, Loss of Inheritance and Loss of Freedom

Unimaginable? A millionaire accumulated NT$ 200 million but could not let his children inherit them just due to the inheritance tax of NT$ 80 million!

Detailed Calculation:

(Total inheritable land value 190 million) x (inheritance tax rate 50%) ¡V (accumulative inheritance tax balance 14.507 million) = (inheritance tax 80.493 million)

It is reported in the newspaper that there is a millionaire named Lin in Taipei City who accumulated property for about NT $200 million in the form of land. One day Lin was sudden dead and his wife, two sons and one daughter became the legal heirs if paid the inheritance tax of 80 millions audited by the related tax authority. However, the heirs had no cash to pay the inheritance tax. If the deceased¡¦s land is used to offset the tax, the price will be 4 to 5 times lower than the prevailing market price, and the total land value at the offset price cannot pay off the inheritance tax either. The heirs intended to sell the land but could not find the buyer in short time. Later on the heirs planned to pay the inheritance tax by installment, but the due time for payment already expired, and the tax plus interest become more out of the capability of the heirs. So the heirs decided to waive the inheritance right, unfortunately the time of waiver declaration again expired. Finally the land was sealed up by the court and the heirs¡¦ self-occupied residences were also be auctioned by the court to pay the tax, and unfortunately the poor heirs was not able to pay off the tax yet, so they are restricted by law to leave the country.

B.Hundreds of Millions of Inheritance Did Not Benefited But Hurt Heirs Just Because of No Tax Programming

Almost every person will face the problem of inheritance tax. Only with advance tax programming, will the inheritance benefit the heirs.

According to the law, the inheritance is the donation of the deceased to the heirs. This kind of donation is protected by the law under the condition of inheritance tax paid by the heirs. Only after tax paid, can the donation (real estate) be transferred and registered under the name of the heirs and done.

The inheritance and donated property must be good and advance programmed for tax payment so as to minimize the payable tax. If good programmed, about 70% of the payable amount can be lessened.

Kuan-Pin Company can provide comprehensive legal consultancy service

Company Website Function

The current website of http://www.lhouse.com.tw is with the following functions:

1. Bank overdue-loan house and inherited house (with the banks, farmer associations, trust unions and credit cooperatives listed)