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Taiwan – Tax Benefits for Reporting Serious Tax Evasion Announced

Retrieve of the Tax Benefits Due to Serious Tax Evasion Announced on Website

On July 04 2024, the Ministry of Finance(MOF) released the principle of the announcement and the retrieval of serious tax evasion’s tax benefits, in which the public would know the violation process and enhance the compliance of the regulations.

In the case, a taxpayer is found to have committed serious acts in violation of environmental protection, labor, food safety and sanitation laws, MOF will terminate the tax incentive and recover the benefits. Also, The MOF shall announce the name of the taxpayer, on the website from July 1 to December 31 of the year following the year in which the sanction is determined.

For example, company A was entitled to 2022 value-added-tax deduction based on Culture and the Arts Reward and Promotion Act (文化藝術獎助及促進條例), and income tax deduction based on Statute for Industrial Innovation (產業創新條例). After the company was assessed and found for value-added-tax violation, company A’s all of the incentive on value-added-tax above will be retrieved.

Article 48,Tax Collection Act-

A taxpayer who commits a material act of tax evasion shall be dealt with in accordance with the applicable provisions of tax acts, and, in addition thereto, the MOF shall terminate the tax incentive and recover the benefits to which the taxpayer was originally entitled for the year(s) in which the violation occurred.