National Taxation Bureau of Taipei, Ministry of Finance (hereinafter referred to as NTBT) stated that students who have salaries during their vacations should be aware of possible tax fraud. Upon receipt of the aforementioned salaries, please check the difference between the actual amount received and the payroll figure, and keep all the payroll papers, envelopes, or any other relevant transfer records as evidence for proof.
NTBT further explained that taxpayers should file their last year's tax returns from May 1 to May 31 in accordance with Article 71 of the Income Tax Act. As most false salary reporting cases are found in May, especially while taxpayers are checking their household income and figuring out expenses of their children in college who had unknown income last year. If the salaries reported by employers are wrong, please submit the relevant evidence to your district tax offices, and the tax offices will remove the false income from your tax returns and apply penalties for the illegal behaviors if the tax fraud report is true.
An example is provided by NTBT: Mr. A had an enquiry with his tax office for his household income last year, and found out there was an unknown salary income worth NTD 180,000 for his son B. B claimed that he worked for Company C only shortly in summer vacation, and the payroll was only NTD 10,000. Mr. A revealed this to the tax office. Company C explained that it was an accounting error, and filed a corrected returns to tax office and pay relevant taxes. However, the correction was denied by the tax office, and Company C was penalized by Article 110 of the Income Tax Act due to it was an application later than investigation, in accordance with Article 48-1 of the Tax Collection Act.
NTBT urged taxpayers to keep the false salary cases in check to protect their rights. Pay attention to your children's part-time jobs, including the possible information leakage to third parties, including an ID Card, personal chops, etc. Absolutely be aware of the actual amount received and of the payroll amount reported.
(Contact person: Section Chief Chen from the Department of Legal Affairs; Tel: 2311-3711 ext. 2071)