Fri, Jul 17, 2009 - Page 3 News List

High court upholds tax evasion fines for Chen Hsing-yu


A high court ruled yesterday that the daughter and son-in-law of former president Chen Shui-bian (陳水扁) are liable for the fines imposed on them earlier by the Taipei National Tax Administration for tax evasion.

The Taipei High Administrative Court threw out the appeals by Chen Hsing-yu (陳幸妤) and Chao Chien-ming (趙建銘) against a decision by the Ministry of Finance, which upheld the tax administration’s fine against them.

The court said the tax administration’s decision was justified in light of the fact that the couple paid their personal income taxes in full only after the administration discovered that they had not declared all of their income on their tax returns.

The high court’s ruling can be appealed.

The case arose from a probe in 2006 by law enforcement officials into the couple’s income after it was reported that Chao had engaged in insider trading of Taiwan Development Corporation stocks in 2005.


The authorities found that the couple, who filed joint tax returns, failed to report income from their advertising work for a private blood bank in 2002 and 2005.

The Taipei National Tax Administration therefore imposed a fine of NT$876,000 (US$26,610) on Chen Hsing-yu, in addition to requiring that she pay outstanding income taxes of NT$1.43 million.

Her husband was fined NT$1.01 million and his outstanding income taxes were calculated at NT$1.7 million.

The couple appealed the administration’s decision to the Ministry of Finance, then later to the Taipei High Administrative court.

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