Prosecutors crack senior executives' tax evasion scheme

Taipei prosecutors are investigating a number of executives on suspicion of evading taxes by making fake donations.

"There are more than 190 individuals under investigation including Chan Tsui-fang (詹翠芳), chief financial officer of Deutsche Bank's Taipei Branch, Chu Shu-hsun (朱樹勳), principle of Taipei's Far Eastern Memorial Hospital and many others," Taipei Prosecutor Huang Ho-tsun (黃和村) told a press conference yesterday.

Because Chan and Chu had admitted their crimes, Huang said prosecutors had decided to give the pair suspended indictments on condition they make donations to charitable organizations.

The official said Chan had made a total of NT$45 million (US$1.4 million) in false donations, which helped her to evade paying around NT$18 million in taxes.

While prosecutors asked Chan to make a NT$5.5 million donation to charitable groups, Chu would make a NT$1 million donation, said Huang.

Other individuals include a number of high-income officials from big companies and financial institutions as well as doctors, Huang said.

Prosecutors said Chan, Chu and others made donations to Shihding (石碇) Township Office for the purpose of tree planting in the township, and the township had issued receipts for the donations. However, the township did not plant any trees.

Prosecutors said the township office had issued receipts covering a total of NT$850 million donations and helped individuals to evade a total of NT$350 million in taxes.

Prosecutors added that the township office had returned part of the money to the donors.

Taipei prosecutors on Tuesday raided 12 places across Taipei City and Taipei County, including Shihding Township Office, and summoned a number of individuals for questioning.

Mayor of the township Yeh jung-haw (葉榮華) was not among them as he left for Hong Kong on Tuesday.