The Legislative Yuan adopted the amendments to the Tax Collection Law (hereinafter, the “Law”) during the 9th Meeting of the 6th Session of the 9th Term on November 20, 2018. The Amendments are highlighted below:
First, the name of a person who enjoys tax incentives but evades taxes will be announced.
Under Article 33 of the Tax Collection Law, tax collectors are required to maintain the secrecy of relevant data about taxpayers. However, to effectively prevent tax evasion, Article 34 of the same law provides that the name of a tax evader as well as the facts and details about the tax evasion may be announced. To effectively deter tax evasion by persons enjoying tax incentives, Article 48 of the Law as amended specifically stipulates that the competent authority shall stop and take back the tax incentives enjoyed by a violator and shall announce the name or designation of the taxpayer in the year following the year when the disposition to terminate and take back the tax incentives is rendered.
In addition, it is additionally stipulated that a penalty for late payment may be exempt if application to defer tax payment or make installment tax payment is granted.
The requirement for paying a penalty for late tax payment is eased this time. Article 20 of the Law as amended specifically stipulates that in case of force majeure or any reason not attributable to the taxpayer to the extent that the tax cannot be paid in full during the statutory period, a penalty for late payment may be exempt if an approval is granted to an application filed with the tax authority for an extension or installment payment by presenting specific evidence within ten days after the reasons lapse.