2 February, 2018
Paragraph 2 of Article 48 of the Tax Collection Act provides that, in the event a taxpayer is found to have committed material violation of environmental protection, labor, food safety or sanitation laws, the central competent authority of the tax incentive laws shall notice the MOF to terminate the tax incentive and recover the benefits to which the taxpayer was originally entitled for the year(s) in which the violation occurred.
For purpose of suppressing violation of law and enhancing corporate social responsibility, the MOF promulgated the “Principle for Tax Collection Authorities to Terminate and Recover Tax Incentives According to Article 48 of the Tax Collection Act” on December 1, 2017.
According to the Principles, even if the MOF has not yet received the notice from the central competent atrocity of the tax incentive law, the tax bureau where the head office of the taxpayer is located should take the initiative to inform the competent authorities and add the taxpayer onto the special monitoring list, so that the MOF can promptly handle the subsequent termination and recovery of tax incentives to meet the social expectations.
For further information, please contact:
Sophia Yeh, Associate Partner,Tsar & Tsai Law Firm
sophiayeh@tsartsai.com.tw
