The National Taxation Bureau of the Northern Area (NTBNA) has announced that if a taxpayer fails to pay due taxes and transfers real estate to a third party through a trust in an attempt to evade tax enforcement, the taxation authority may, under Paragraph 5, Article 24 of the Tax Collection Act（by reference to Articles 6 and 7 of the Trust Law）, file a civil lawsuit with the court and apply for provisional injunction on the real estate to ensure successful tax collection.
The Bureau provides the following example: Taxpayer Mr. A failed to report withholding taxes and business income for the years 2012 to 2014 as required by the Income Tax Act, resulting in a fine totaling over NT$18 million. After failing to pay within the stipulated period and following enforcement on all assets in his name, he still owed over NT$14 million as of February 2024. The Bureau discovered that, in March 2015, to prevent the property from being executed upon by third parties, Mr. A transferred the ownership to his mother, Ms. B, via trust registration. This action was previously ruled by the court as a fraudulent act to harm creditors. To protect its claims, the Bureau filed a lawsuit in March 2024, asserting that the real estate trust contract between Mr. A and Ms. B was invalid due to collusion and false intent. Additionally, to prevent Mr. A from disposing of the trust assets during litigation, the Bureau applied for a provisional injunction with the court. Upon the court’s approval of the provisional injunction and subsequent sealing of the trust property, Mr. A felt pressured and promptly contacted the Bureau to settle the outstanding fines.
The Bureau urges taxpayers to fulfill their tax obligations within the prescribed time frame and not to attempt evasion by concealing or transferring assets. Any such action could lead to litigation. For further assistance, please use the toll-free service number 0800-000321 for detailed consultation, and the Bureau will be glad to offer its services.
〔Contact person: Ms. Wang, Head, Collection and Information Management Division ;Tel：（03） 3396789 ext. 1180〕