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Penalty Waiver Applies to a Taxpayer Who Voluntarily Refiles the Tax Before the Case is Brought About by an Informant Which is not Limited to Reporting to an Investigator Appointed by Authorities Concerned

National Taxation Bureau of Taipei, Ministry of Finance (NTBT) expressed that the tax evasion case, which is brought about by an informant and then confirmed by the NTBT, shall commence the investigation on the day when the report is made. However, the informant's identity is not compulsorily disclosed, and the definition of "case brought about by an informant" is not confined to a case reported to an investigator appointed by the tax collection authority or the Ministry of Finance.
NTBT indicated that a taxpayer, who voluntarily files a supplementary tax declaration with the tax collection authority and makes supplementary payment to cover the tax amount failed to declare before the case is reported or under investigation by an investigator appointed by the tax collection authority or the Ministry of Finance, may be remitted from the punishments regulated on the tax law. The reported cases shall include the cases brought about by an informant to the government agency, which is responsible for audits, investigations, and sanctions, or the cases voluntarily found and detected by the agency itself. In other words, the cases are not confined to those directly reported to the investigators appointed by the tax collection authority or the Ministry of Finance.
NTBT interpreted that, for example, Company A, which was suspected underreporting annual income of NT$15,000,000 on the tax return in the fiscal year of 2013, was reported as a tax evasion case to the Taipei City Field Office of the Investigation Bureau on January 8th , 2015. Then the Taipei City Field Office of the Investigation Bureau informed NTBT on December 3rd of the same year. Company A was imposed no more than double fines for underreporting the tax. Although Company A had refiled the tax and declared the commodity revenue of NT$ 15,000,000 in 2013 and pay their fair share of tax on March 25th , 2015, the case was not qualified for applying to the penalty waiver clause because the refile date (March 25th , 2015) was later than the reporting date (January 8th , 2015).
NTBT appealed to the public that taxpayers should file their tax in accordance with the law. Once the underreporting of tax has been found, taxpayers should voluntarily files a supplementary tax declaration with the tax collection authority and makes supplementary payment to cover the tax amount failed to declare as soon as possible. The penalty will be imposed after the investigation is confirmed by the investigator appointed by the tax collection authority or the Ministry of Finance. Shall taxpayers have any question regarding their tax-filing, they can dial NTBT's toll-free service number:  0800-000321 or directly go to the local tax collection authority to get more information.
 (Contact window: Mr. Chien, Revenue Assessor of the Third
Examination Division; TEL: 2311-3711 ext. 1730)
  • Issuing Unit:National Taxation Bureau of Taipei

  • Publish date:2016-07-22

  • View Date:2016-07-22

  • Update Date:2016-07-22

  • Rate:728