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Ex-police official said to owe huge fines

Ding Yuan-chin (丁原進) should pay NT$16 million in taxes and fines for receiving cash gifts to purchase an upscale villa in Wenshan District, Taipei City councilors alleged yesterday.

Ding is the former head of the National Police Administration and previous chief of the Taipei City Police Headquarters. New Party city councilors Lee Ching-yuan (李慶元) and Chung Hsiao-ping (鍾小平) said yesterday that Ding owes the government NT$16 million, because he has failed to pay gift taxes after accepting NT$6 million from his only son and NT$20 million from a close personal friend.

The Inheritance and Donation Tax Law stipulates that any cash gift greater than NT$600,000 is subject to taxation.

Ding claimed on Tuesday that to buy a house in Vision City (世界山莊) worth NT$38 million, he gathered NT$6 million from his only son and borrowed NT$20 million from one of his good friends.

"For the NT$6 million, Ding should've paid 21 percent of the amount, or NT$1.2 million, as required by law," Chung said.

Fines for failing to pay the donation tax is twice the amount taxed. In other words, Ding is subject to a fine of NT$2.4 million for failing to pay the NT$1.2 million tax, Chung said.

Although Ding claimed that he borrowed NT$20 million from one of his close friends, it's a loan with zero interest and no official records indicate that he has used another apartment in Taipei's Peining Road (北寧路) as collateral as he claimed.

Therefore, Chung said from a legal point of view, the NT$20 million should be considered as a cash gift as well.

According to the donation tax law, a 34 percent tax is levied on a gift amounting to between NT$14 million and NT$29 million. In other words, the tax for the NT$20 million donation should be NT$6.8 million.

Because fines for failing to pay the donation tax are twice the amount of the original tax, the fine for not paying the NT$6.8 million donation tax should be NT$13.6 million.

Lee also said that Ding has been lying since the news broke on July 7.

"In the beginning, he said that his daughter wired NT$7 million from abroad to help him purchase the house. Then he claimed in Tuesday's press conference that his son gave him NT$6 million," Lee said.

In addition to suspicious financial connections with Ong Da-ming (翁大銘), CEO of the Hualon Corp (華隆集團), Lee said that Ding has a close relationship with another tycoon, Sun Tao-chi (孫道濟), chairman of the Pacific Wire and Cable Group (太電集團).

Ding currently serves as president of the Pan-Pacific Venture Capital Corp (聯太創業投資), a subsidiary of the group.

Lee also pointed to irregularities with Ding's bank account.

"Overall, he had a NT$4.2 million increase after he became the head of the National Police Administration in 1997," he said.
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