The Taiwan High Court found independent legislator and former township chief Liao Hsueh-kuang (
Liao, a former township chief for Hsichih (汐止) in Taipei County, had previously been given an 18-year sentence for levying the so-called "township chief tax" against local companies six years ago.
PHOTO: GEORGE TSORNG, TAIPEI TIMES
Liao levied the tax during his term between 1990 and 1993, and was the first township chief to charge the assessment.
According to Tsai Kuang-chih (蔡光治), the ruling judge in the case, some 267 private companies and more than 400 venders at local night markets paid the "township chief tax." Total receipts, he said, "were as high as NT$220 billion."
According to government regulations, all construction companies need to obtain a local township's permission before applying for a construction license from a city or county government.
In order to boost the township's revenues, Liao created a special "community development fund" (
Tsai said yesterday, that in the absence of a better local tax regulation, it was reasonable and acceptable for Hsichih to create a community development fund.
"How can local chiefs develop their communities when they lack necessary administrative powers like these?" Tsai said.
Lee Hsiang-chu (李相助), the presiding judge in the appeals case, said yesterday that, according to Taiwan's construction laws, it was reasonable for firms to pay compensation for damage resulting from construction work.
In addition, both Lee and Tsai said, Liao never put the collected tax into his own pocket -- a fact that favored the lawmaker.
In response to the judges' decision, Liao -- who had been suspended from his township post because of the case and was later elected to the legislature -- said yesterday that he was delighted by the judgement. "I have been tortured by the case for too long," he said.
Liao also said yesterday that he would run in the legislative election at the end of the year.
Liao's wife, Chou Li-mei (周麗美), was elected as township chief for Hsichih after Liao stepped down.
Meanwhile, Liao said yesterday's ruling was a victory for other local government chiefs who are also being prosecuted for charging development fees to local businesses in order to fill local coffers.
Other targeted local government heads include Liao Pen-yen (
Hsinchu Mayor Tsai Jen-chien (
Prosecutors who brought the case against Liao said yesterday that they were unsure whether to appeal yesterday's verdict to the Supreme Court.
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