Taiwan’s Tax Payers Call for Tax Human Rights | WPN World People News

Illegal tax impositions have caused nightmare for tax victims in Taiwan. Numbers of tax victims were forced to commit suicide because of the huge amount of tax bill and penalty. Tax victims, including members Tai Ji Men Qigong Academy (hereafter Tai Ji Men), gathered in Control Yuan and requested their tax human rights in the after noon of February 16, shortly before the Chinese New Year.

On March 4, 2002, The Control Yuan investigated Tai Ji Men case over one year and outlined prosecutor’s eight flaws. In 2005, Tai Ji Men case was published on General Report on the Work of Human Rights Protection of the Control Yuan as an example of an important case of human rights violations. In addition, on July 13, 2007, Tai Ji Men case was finally settled with a court declaration of not guilty, no fraud, no tax evasions and no violations of tax codes.

However, tax administrations ignored all these and just reduced taxes due and reissued tax bills. In the assessment of taxes in Tai Ji Men case, Tax Administration based the assessment upon the bill of indictment without exercising due diligence. Tax Administration issued tax bills of income taxes and business taxes with deep penalties, without regards to the red envelop should be treated as tax free income. Nevertheless, the Control Yuan confirmed seven flaws of the Tax Administration in the assessment of taxes on Tai Ji Men on September 2, 2008. It is evident that the tax bills were illegitimate since the beginning. However, Tax Administrative refused to follow court orders and the Control Yuan’s investigations. They just reduced taxes due and reissued tax bills.

After long process of appeal and administrative relief from members of Tai Ji Men, the Administration Yuan called a cross-ministerial meeting including Secretary-general of the Administrative Yuan, Finance Minister, Vice Minister of Justice, and Director-general of National Taxation Bureau of Taipei, Ministry of Finance on December 9, 2011. They led to a conclusion that Taipei Taxation Bureau would have an open investigation in a week. If they confirmed that the red envelop is a monetary gift but not tuition, then Tai Ji Men tax case should be closed.

The investigation proved that all of Tai Ji Men members declared what they presented was red envelope, not tuition. However, the Tax Administration ignores what the evidence shows and still reissues a tax bill to Tai Ji Men. Their action is a serious violation of administrative procedure and principle of evidence
Tai Ji Men members complain that this case has lasted for almost 20 years. It is ridiculous that the Tax Administration refuse to withdraw the tax bills which were illegitimate since the beginning.

Mr. Lee is a tax victim who sold his house in May, 2012 and received a notice from the Tax Administration after 2 months. The notice said that Mr. Lee owned the house less then 2 years, and his census register was in other place, so he had to pay a 15% sales tax. Though Mr. Lee showed his receipts of water and electricity bills to prove that the selling is not for speculation, he was still charged nearly one-million luxury tax.

Ms. Chen said that her client owns technology shares, but did not receive a penny of income. However, he was charged tens of millions taxes and become a tax evader. Ms. Chen said that there must be many similar cases not reported as taxpayers chose to settle the case by paying taxes, with grudge. And it is not right. Both the Tax Administration and the Administration Court should not tax base on numbers shown on paper, but base on Substantive Taxation Principle or principle of proportion, said Ms. Chen.

source: Global People Daily News