Execution Yuan passed the amendment draft for the Tax Collection Act by reducing 1% levy of late tax payment penalty from “every 2 days” to “every 3 days”, total levy be reduced from 15% to 10% as to ensure that tax revenues and taxpayers’ interests are taken into account.
Heavier penalty will also be imposed for tax evasion from originally NT$60,000 fine to an imprisonment up to 5 years, by detention or maximum of NT$5 million penalty; for major tax evasion, an imprisonment of minimum of 1 year and maximum of 7 years, minimum of NT$10 million and maximum of NT$ 100 million penalty.
The Execution Yuan has also passed the amendment draft of Land Tax Act on April 15th. In addition to the two amendment drafts of Commodity Tax Act being sent to the Execution Yuan, the extension of levy reduction for the energy saving appliances and new replacement of cars and motor bikes, there are a total of four major finance and taxation bills to be passed and to be third-read by this session.
On one hand, the amendment reduces the levy of late payment penalty and adding application for instalment; on the other hand, heavier penalty has also been imposed. This shall protect the taxpayers’ rights and the country’s credit rights. The Ministry of Finance was instructed by Executive Yuan President Su Tseng-Chang to communicate with all political parties in the Legislative Yuan to complete the amendment process as soon as possible.
The Commissioner of Tax Administration, Ministry of Finance, Hsu, Tzu-Mei, pointed that the amendment’s key is to “burden relief”, “fairness protection” and “effectiveness alignment”. For “burden relief”, reducing 1% levy of late tax payment penalty from “every 2 days” to “every 3 days”, total levy be reduced from 15% to 10% as to protect taxpayers interest. This shall help taxpayers with tax paying intention to pay tax and in relaxing taxpayers’ application to interest-added instalment...
| Amendment key points of Tax Collection Act | |
| Item |
Key Content |
| Reducing late tax payment penalty |
Reducing 1% levy of late tax payment penalty from “every 2 days” to “every 3 days”, total levy rate be reduced from 15% to 10% |
| Enhancing Tax Evasion Penalty |
|
| Adding reporting bonus limit |
20% of the penalty per case, maximum of NT$4.8 million |
| Retrospective period of premium tax payment by mistake |
From “5 years” or “unlimited” aligned to ten years as the limit. |
Hsu, Tzu-Mei advised that, for “fairness protection”, enhancing tax evasion penalty from NT$60,000 below to NT$5 million, and imposing minimum of 1 year and maximum of 7 years imprisonment with minimum of NT$10 million and maximum of NT$100 million penalty for individuals tax evading above NT$10 million and profit generating business tax evading above NT$50 million.
Hsu, Tzu-Mei pointed that the amendment has added limits to the standard and qualification to reporting bonus issuance. To align with the standard, the reporting bonus becomes 20% of the penalty and maximum at NT$4.8 million after the amendment. Tax officers, spouses and third degree relatives of tax auditors, execution officials and tax evasion participants are not eligible for the reporting bonus.
Hsu, Tze-Mei further mentioned that, for “effectiveness alignment”, the retrospective period of premium tax payment by mistake be aligned to “10 years” from “5 years” or “unlimited”. No refund application can be made for payment knowingly no tax liability, tax law violation or any other law requirements, e.g. additional tax payment caused by inflated income in use of bank loan fraudulent.
News Source：【Commercial Times 2020/04/16】
