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Tax Administration

1

Q

Should a taxpayer first pay the additional tax levied even if he objects to the decision made following a recheck and submits an administrative appeal?

A

As stipulated in Article 39 of the Tax Collection Act, a case may not be referred for compulsory enforcement for the time being if the taxpayer provides collateral equal to half of the taxable amount decided following the recheck or equivalent collateral, or if the tax authority prohibits disposal of the property that equals the taxable amount decided following the recheck. However, a taxpayer is not required to pay a fine first if he submits an administrative appeal against the decision made by the tax authority regarding the fine and the fine is not subject to compulsory enforcement before the administrative remedy procedure is concluded, as set forth in Article 50-2 of the same act.

2

Q

Will a penalty be waived if I discover an error or omission on my individual income tax return after the filing period has expired and have voluntarily filed an amended tax return and made a supplementary payment?

A

In case of an incorrect tax return due to negligence or misunderstanding, a penalty will be waived if the taxpayer discovers the error or omission by her/himself andvoluntarily files an amended tax return and makes a supplementary payment before a complaint is filed and the investigators designated by a tax authority or the Ministry of Finance initiates an investigation.

3

Q

If taxpayers object to the interest added to the payable taxes and administrative remedies imposed by the revenue service authority upon review, what should be done to request a relief?

A

If taxpayers object to the revenue service authority’s review results, they may submit their written petitions and raise appeals legally to the original judging authority or appeal handling authority within 30 days from reception of the notification of the review results (Paragraph 1, Article 14, of the Administrative Appeal Act); but if taxpayers object to the amount of the tax as decided after review, the decision about the interest shall be ineffective during the appealing period.

4

Q

If the deadline for paying any tax falls on a Thursday, Friday, Saturday, Sunday, or any holiday, what is the starting date for calculating late penalties?

A

Examples are given below for illustration:

Example 1: Deadline is on Thursday.

Friday & Saturday – no more than 2 days overdue, no late penalty.

Sunday & Monday – more than 2 days overdue, add 1% late penalty (and so on).

Example 2: Deadline is on Friday.

Saturday & Sunday – no more than 2 days overdue, no late penalty.

Monday & Tuesday – more than 2 days overdue, add 1% late penalty (and so on).

Example 3: Deadline is on Saturday.

Sunday, Monday, Tuesday, & Wednesday – no more than 2 days overdue, no late penalty.

Thursday & Friday – more than 2 days overdue, add 1% late penalty (and so on).

Example 4: Deadline is on Sunday (put off one day to Monday).

Tuesday & Wednesday – no more than 2 days overdue, no late penalty.

Thursday & Friday – more than 2 days overdue, add 1% late penalty (and so on).

Example 5: Deadline is on a holiday (e.g. on Thursday, put off one day to Friday).

Saturday & Sunday – no more than 2 days overdue, no late penalty.

Monday & Tuesday – more than 2 days overdue, add 1% late penalty(and so on).

5

Q

May I enquire about income information at the Tainan Branch at noon if my household is registered in Kaohsiung?

A

Certainly! The General Services Counter of Tainan Branch is open during lunchtime. Its service hours are from 8 a.m. to 5 p.m.

6

Q

What is the remedy for failing to apply for rechecking within the statutory period due to the occurrence of a natural disaster, incident, or an event of force majeure?

A

Pursuant to Article 35 of the Tax Collection Act, in the event where a taxpayer or his/her/its agent has failed to apply for rechecking within the statutory period due to the occurrence of a natural disaster, incident, or an event of force majeure, the taxpayer or his/her/its agent may, within one month after the extinguishment of the cause of delay, file an application, along with concrete evidence, for reinstatement of original conditions and simultaneously complete the necessary action(s) which should have been completed during the statutory period for the application of rechecking. However, no recheck application shall be allowed if the period of delay in applying for rechecking exceeds one year.

7

Q

What documents need to be attached to an application for an inquiry about income?

A

1.The original passport or Alien Resident Certificate of the applicant.

2.A letter of appointment or power of attorney and the original ID card or identity document of the agent shall be submitted if the application is made by an agent. Besides,if the appointment is made outside the ROC it must be verified by ROC government institutions abroad.

8

Q

If any, how shall a profit-seeking enterprise make its voluntary payment of tax?

A

1. Payment of Business Tax can be made to acting tax collecting financial institutions (post offices not included), or to convenience stores providing bar-code payment notice of amount of tax no more than NT$30,000, in addition to instant transfer payment by means of IC ATM cards, credit cards (only for declaration made via internet by sole proprietorship or partnership organizations) and demand deposit accounts (only for declaration made via internet with MOEA Certification Authority IC Cards).

2.Payment of Profit-Seeking Enterprise Income Tax can be made to acting tax collecting financial institutions (post offices not included), or to convenience stores providing bar-code payment notice of amount of tax no more than NT$30,000, in addition to instant transfer payment by means of IC ATM cards,credit cards (only for declaration made via internet by sole proprietorship or partnership organizations),ATMs and demand deposit accounts (only for declaration made via internet with MOEA Certification Authority IC Cards).

9

Q

What can the taxpayer do if he/she refuses to accept the imposed tax?

A

The taxpayer may apply for recheck if he/she refuses to accept the tax imposed by the tax authorities. He/shemay explain the reason, together with supporting documents, in accordance with the following provisions:

1.When there is “tax payable” or “tax shortage” in the tax assessment notice, an application for recheck shall, after receipt of the tax bill, be filed within 30 days from the date of expiration of the period for payment of said tax.

2.When there is no “tax payable” or “tax shortage” in the tax assessment notice, an application for recheck shall be filed within 30 days from the date of receipt of the tax assessment notice.

3.Joint owners receiving a Notice of Assessment or being informed by means of an announcement in an official notice shall apply for a recheck within 30 days from the day following the payment deadline of the tax payable or deficient tax payable specified in the Notice of Assessment or the announcement.

4.The taxpayer or his/her agent who are unable to apply for recheck in time due to natural disaster or other force majeure, shall submit evidence and apply for reinstatement of the application for recheck within one month after eradication of the cause. However, no application will be accepted if the application for recheck has been delayed for more than one year.

5.If the taxpayer is still not satisfied with the decision of the authority after recheck, he/she may file a petitionor a lawsuit in accordance with the law.

10

Q

How is the application period defined if taxpayers apply for recheck by mail?

A

In accordance with Section 49 of the Administrative Procedures Act, the application period shall be defined as commencing from the date of postmark on the letter from the taxpayer requesting application for recheck.

11

Q

How is the interest for administrative remedies on tax repayment calculated?

A

If the final decision or judgment is made after recheck, appeal, or administrative proceedings, the tax authority shall, within 10 days of receiving the decision on the recheck,appeal or original verdict of the administrative court, issue a notice to inform the taxpayer to repay the tax plus daily interest from the day following the last day of the period for payment of the original tax to the date of issuance of the tax notice at the published one-year savings fixed interest rate set on January 1 of the year. (Under the Article 38, Paragraph 2 of the Tax Collection Act, it's on the last day of the period for payment of the original tax applies before the amendment of 10 January 2011.)

12

Q

Will the court enforce tax payment if taxpayers fail to pay taxes payable within 30 days after the last day of the period for payment of the tax?

A

The tax authorities shall request the Branch office under the Administrative Enforcement Agency, Ministry of Justice, to enforce tax payment if taxpayers fail to pay taxes payable within 30 days after the last day of the period for payment of the tax.However, inaccordance with Article 35 of the Tax Collection Act, enforcement by the Administrative Enforcement Agency,may be postponed if application for review has been made.

13

Q

How long does it take for the tax authorities to make a decision on the application for review and to notify the taxpayer?

A

The tax authorities shall make a decision on the application for review and notify the taxpayer within two months after receiving the application. The taxpayer may appeal if the tax authorities fail to make a decision on the application for review within two months after receiving the application.

14

Q

How is tax evasion reported? What information is required?

A

According to Point 13 of ‘The Essentials for Tax Authorities at All Levels in Dealing with Reported Cases of Illegal Tax Evasion,’ tax authorities shall check the following when a case is reported, and refuse to process such report if any of the items referred to is missing:

1.Name and address of the informant.

2.Name and address of the reported individual, and in the case of companies or firms, the name and business address of the responsible person.

3.Facts and evidence of the reported tax evasion.

The tax authorities may accept a reported case only if the above-mentioned facts and evidence have been provided.

15

Q

Are there any adverse effects if a taxpayer does not pay his or her taxes within the time limit?

A

If a taxpayer does not pay his or her taxes within the time limit, a 1% penalty fee will be added on top of the overdue amount every two days for a maximum of 30 days. A case overdue for more than 30 days will be transferred from the tax authorities to the Administrative Enforcement Agency of the Ministry of Justice for enforcement. Moreover, interest penalty, the interest rate of which is based on the fixed rate for postal savings announced on January 1 every year, shall be imposed on the late payment from the next day after the expiry date to the day when the tax and penalty are both paid.

16

Q

If a taxpayer finds there are errors on the tax return notice, including miscalculation or repetition of charges, how can he or she apply for correction? Need he or she pay the tax first?

A

A taxpayer who has found errors on the tax return notice, including miscalculation or repetition of charges, may complete the application form, attach the original copy of the tax return notice, and appeal to the branch office, tax collection office, or service center of the tax authority in his or her district during the tax payment period. He or she is not required to pay the tax first. If the tax authority, after checking, confirms the error(s), it will reply and return the tax return notice to the applicant as soon as possible before the date of the expiry of the period for tax payment, so that the taxpayer can still pay the tax on or before the deadline. If the tax authority replies after the expiry date, the taxpayer is required to pay the tax on or before the new rescheduled date, even if no error has been found in the tax return notice.

17

Q

If a taxpayer is overcharged due to a wrong application of the tax law or miscalculation, how can he or she apply for a refund on the overpaid tax?

A

This question may be addressed according to two different scenarios:

1.If the wrong application of the tax law or miscalculation is made by the taxpayer, he or she shall apply for the refund by presenting concrete evidence within five years from the date of tax payment. Any application overdue for more than five years may be rejected.

2.If the tax authority applies a tax law incorrectly, miscalculates the tax amount, or makes any other errors attributable to the government, the tax authority should refund the overcharged amount to the taxpayer within two years after learning of its own mistake. The refund shall not be limited to those tax payments overcharged within the most recent five years.

18

Q

What documents shall a taxpayer submit for applying for a recheck if he or she objects to a disposition imposing tax?

A

The documents required for applying for a recheck are as follows:

1. Recheck application form;

2. Notice for assessment of tax or written decision for imposition of a fine;

3. Original copy of the tax bill or photocopy of the payment receipt;

4. Supporting documents regarding the items that require rechecking;

5. Power of attorney if another person is authorized to apply for rechecking.

If you have any further questions about the above, please call (06) 222-3111. For more Q&As (questions and answers), please visit the website of the National Taxation Bureau of the Southern Area, Ministry of Finance.

Last updated:2021-04-01