Soong says no tax owed on money that wasn't his

Facing a renewed allegation of tax evasion involving the Chung Hsing Bills Finance case (興票案), PFP Chairman James Soong (宋楚瑜) yesterday said he was not obliged to pay taxes on the money that he allegedly embezzled in that case, as the money was never his.

Furthermore, Soong said, an investigation by prosecutors already proved that he had not misappropriated any money.

"I've made an account of the money, given a clear explanation of its use and submitted the money to the court," Soong said.

Soong made the remarks in response to TSU legislator Chien Lin Whei-jun's (錢林慧君) questions as to why Soong had the "privilege" of traveling abroad freely in 2000 when still owing around NT$90 million in tax arrears -- incurred after the disclosure of the Chung Hsing Bills Finance case.

According to statistics provided by Chien Lin, over 19,000 people were barred from leaving Taiwan by the end of last year for their evasion of NT$500,000 or more in tax.

The legislator accused Ministry of Finance officials of malfeasance for not treating Soong with the same standard.

Minister of Finance Lee Yung-san (李庸三) yesterday insisted the ministry had handled the case in accordance with the law.

Lee said there was no reason for the ministry to block Soong from leaving the country, as he has offered a guarantee for the tax payment.

Meanwhile, officials at the ministry's National Tax Administration of Taipei, which is in charge of collecting tax, would not disclose as to when Soong offered the guarantee, on the grounds that the matter concerned his privacy.

In the Chung Hsing Bills Finance case, which was uncovered in 1999 during the run-up to the 2000 presidential election, Soong was alleged to have embezzled funds from his former party, the KMT.

It was discovered during an investigation of that case that over NT$100 million from the funds had been sent to the bank account of his son, Allen Soong (宋鎮遠), in 1992.

Based on this finding, the Ministry of Finance in January 2000 demanded Soong pay approximately NT$45 million in gift taxes and another NT$45 million in fines for delaying payment.

Though Soong asked the ministry to review its order before the payment deadline in April 2000, the ministry should have asked the Bureau of Immigration to prohibit him from leaving Taiwan because he did not provide any guarantee of payment, according to Chien Lin.

While Soong only put up an NT$50 million fixed-deposit bill as guarantee on Jan 4, 2001, he was allowed to travel abroad twice in May and August 2000, the legislator said.

The Chung Hsing Bills Finance case was generally believed to have led to Soong's defeat in his presidential bid.

But prosecutors decided on Jan. 20 last year not to indict Soong, confirming Soong's claim that the funds were deposited in his bank accounts for the party's use, with the authorization of then KMT Chairman Lee Teng-hui (李登輝).