Newsletter
MAXIMUM PENALTY FOR FAILURE TO PROVIDE, RECEIVE, OR RETAIN CERTIFICATES IS NT$1 MILLION
Under Article 44 of the Tax Collection Act currently in force, if a profit-seeking enterprise fails to provide, receive, or retain certificates, the authorities will fine the enterprise an amount equivalent to five percent of the total amount on the relevant certificates. The fine is considered a penalty for misconduct, and Article 44 does not provide a reasonable maximum. Therefore, such penalty for misconduct could be higher than the amount of tax evaded, which is obviously against the principle of proportionality in punishment and in violation of property rights. The Legislative Yuan on 15 December 2009 revised Article 44 and included paragraph 2, which stipulates that the maximum fine is NT$1 million.
Article 48-3 of the Tax Collection Act provides that the newer or the more lenient law shall be applied in a tax penalty case. A profit-seeking enterprise that has breached Article 44 and whose case is still pending may petition for a reduced fine according to the new Paragraph 2 of Article 44.