Ministry of Finance threatens to punish tax cheats

The Ministry of Finance fought back yesterday against a suggestion by People First Party (PFP) legislators that citizens underpay their taxes, saying those who do so will face fines.

Legislators Liu Wen-hsiung (劉文雄) and Lee Hung-chun (李鴻鈞) said on Sunday that people should shortchange the government NT$199 when paying their taxes to protest the Democratic Progressive Party's "disrespect toward the judiciary."

But Joanne Ling (凌忠嫄), income tax director at the Ministry of Finance, said yesterday that, "In addition to interest payments, a fine of 1 percent per day will be imposed," on the overdue balance.

Ling said the PFP legislators had misinterpreted Article 100 of the Income Tax Law (所得稅), which states that taxation agencies are entitled to waive a small amount of tax, upon executive approval, should the costs of collection exceed the tax income.

The article does not necessarily apply to citizens who underpay their taxes, Ling said.

"There's no such legal loophole" she said.

Liu and Lee initiated a campaign on Sunday to encourage the public to "legally" underpay income taxes by NT$199 -- within the NT$200 limit before the tax authorities impose penalties.

The PFP said the campaign, estimated to cost the government up to NT$1 billion in tax revenues, was a protest against what they claim is the Democratic Progressive Party (DPP) government's reluctance to probe the assassination attempt on President Chen Shui-bian (陳水扁).

DPP Deputy Secretary-General Chung Chia-bing (鐘佳濱) said the PFP protest was "an act that lacks wisdom and an act that shows disrespect toward the five branches of government."