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TIME LIMIT FOR FILING RE-CHECK APPLICATION FOR DELAY INTEREST
If a taxpayer fails to pay any amount of tax within the prescribed time limit and does not make the payment within the next 30 days (delinquent tax payment period), the tax authorities can charge delay interest from the date immediately following the date of expiration of the delinquent tax payment period. However, it is unclear under current tax law whether a taxpayer objecting to the decision to charge delay interest is entitled to any remedies. The Ministry of Finance issued a tax ruling on 2 December 2009 indicating that the imposition of delay interest is an administrative decision, which takes effective from the date following the date of expiration of the delinquent tax payment period. Moreover, a taxpayer objecting to delay interest can file a re-check application with the tax authorities within 30 days of the date following the date on which the administrative decision takes effective.
For example, if the National Tax Administration in Taipei (NTAT) imposes an additional NT$1 million business tax on Company A, and Company A fails to pay the additional NT$1 million tax payable before the 7 October (Wednesday) deadline, the NTAT can charge a delinquent tax payment, total NT$150,000, for the period from 9 October to 6 November 2009 (Friday). If Company A still fails to pay the NT$1 million tax payable by 6 November, the tax authorities will charge the delay interest starting from 7 November. The taxpayer objecting to the delay interest can file a re-check application with the NTAT from 8 November to 7 December 2009 (Monday). Please be mindful of the time limit for filing a re-check application for the delay interest.