Ministry of Finance has the right to ISP data, says tax chief

The Ministry of Finance has the right to demand Internet service providers (ISPs) provide data concerning client companies with ".com.tw" addresses for the purpose of tax collection, a senior ministry official claimed yesterday.

Chang Sheng-ho (張盛和), director-general of the Taipei National Tax Administration, was commenting on media reports that some ISPs have said they will refuse to comply with the ministry's demand.

He warned PCHome Online (網路家庭), Yahoo Kimo Inc (雅虎奇摩), Digital United Inc (數位聯合), Chunghwa Telecom Co (中華電信) and six other providers that have been asked to provide client registry data that if they fail to comply, they will be fined.

According to the tax law, such companies can be fined between NT$3,000 (US$92.15) and NT$30,000 continually until they comply.

Ministry officials said they were merely asking for "basic data" to check if the Taiwan-registered companies have applied for business permits from the government. Chang said that if they cannot get hold of the data, it will not be able to collect tax from companies that do not have government permits to operate.

In response to concerns that privacy could be compromised if the providers hand over client data to the government, Lin Chi-chang (林吉昌), director-general of the ministry's Department of Taxation gave his assurance that if any data is leaked, his ministry will accept any criminal responsibility.

Finance Minister Joseph Lyu (呂桔誠) also pledged that privacy would not be compromised and that personal data would not be leaked by the tax authorities.