Reporting Tax Evasion Requires Concrete Evidence
The National Taxation Bureau (NTB) has noted a recent trend where individuals report businesses for tax evasion solely based on recommendations found online, in newspapers, or magazines. These reports are often based on subjective assumptions rather than tangible evidence, leading to ineffective complaints that unnecessarily consume administrative resources.
The NTB clarified that, according to the “Operational Guidelines for Handling Tax Violation and Evasion Cases by Tax Authorities at All Levels,” whistleblowers must provide the following when filing a report:
- The name and address of the whistleblower
- The name and address of the alleged tax violator
- A detailed description of the tax violation
- Concrete evidence that can be used for investigation
If a report is based solely on publicly available information—such as internet posts, newspaper or magazine articles, government bulletins, radio or television broadcasts—the tax authorities will notify the whistleblower to provide additional concrete evidence within a specified period. If no additional evidence is submitted, the report will be dismissed.
Furthermore, the NTB advised that if an individual suspects a business of tax evasion by failing to issue uniform invoices for sales transactions, they can first check the “Taxation Portal Website” of the Ministry of Finance to confirm whether the business has registered for tax purposes and is required to issue uniform invoices. If the business falls under this requirement and has not issued invoices as mandated, the whistleblower should provide specific details regarding the violation, including:
- The name of the reported business
- Details of the tax violation, such as the name of the purchased product, transaction amount, and payment method
- The date and time of the transaction
- The business’s operating address
- Concrete evidence that can be used for investigation, such as order receipts, shipping documents, payment records, or other transaction-related documentation
The NTB urges the public to help uphold tax fairness and combat tax evasion. If individuals possess concrete evidence of a business engaging in tax violations, they can submit a report through the “Tax Evasion Reporting Mailbox” (https://www.ntbna.gov.tw/). Supporting evidence should be attached as a file to complete the reporting process.
