After OBI Pharma last week issued a statement apologizing for failing to register sales of shares by one of its major shareholders as required, people are wondering if other companies listed on the local bourse have also broken the law and should come under scrutiny.
OBI Pharma on Wednesday said that senior finance manager Chang Sui-fen (張穗芬) had failed to register stock trading activities by Alpha Corporate Holdings Ltd, after investigators found the British Virgin Islands-registered company sold OBI Pharma shares worth several hundred million New Taiwan dollars in October last year, which Chang allegedly concealed.
This violated the declaration procedure for publicly listed companies in Taiwan regarding their shareholding changes, and OBI Pharma is likely to face a fine of between NT$240,000 and NT$2.4 million (US$7,423 and US$74,234) under the Securities and Exchange Act (證交法).
OBI Pharma shares have gone into free-fall since Feb. 21, when the firm announced that second and third-phase clinical trial results of a new breast cancer vaccine showed “no statistical significance,” followed by insider-trading allegations involving a number of high-ranking executives and Academia Sinica President Wong Chi-huey (翁啟惠).
The firm said it would begin an internal investigation and take appropriate action in a bid to limit the fallout, but that has not been enough to stave off criticism after media outlets reported that OBI Pharma chairman Michael Chang (張念慈) was a key figure in Alpha Corporate Holdings.
Investigators are still trying to clarify if the British Virgin Islands entity is a shell company set up by Michael Chang to hide his investment profits and whether Chang Sui-fen was under pressure from her superiors to conceal the change in the company’s shareholding structure.
However, questions have also been raised about whether regulators have turned a blind eye to an increasing number of local businesses that have sought shelters from tax laws in places such as the British Virgin Islands, the Cayman Islands and other tax havens.
Samoa and Mauritius are also on the “best” tax haven-list for Taiwanese to register offshore companies. Interestingly, another of OBI’s major shareholders is a Taiwanese company registered in Samoa whose representative is Yang Shih-chien (楊世緘), a national policy adviser to President Ma Ying-jeou (馬英九).
Not all Taiwanese companies registered overseas engage in illegal activities. Many Taiwanese businesses set up overseas-registered entities when the government relaxed restrictions on business investments in China, a move that was aimed at helping them contain the risk of those investments affecting their home market operations. Nowadays, many individuals and companies set up offshore entities to enjoy lower tax rates on capital gains, while a few firms use overseas registries or shell companies to hide assets from tax authorities, help launder the proceeds of criminal activities or conceal misappropriated wealth.
In the case of OBI Pharma, financial authorities and investigators need to find out if high-ranking executives or major shareholders used offshore entities to avoid taxation and financial oversight. However, what was once a single company’s problems are seemingly growing into a regulatory issue and more than just an insider-trading scandal.
If the government does not act swiftly to fix shortcomings in the taxation system and cannot move forcefully enough against the illegal use of offshore companies based in tax havens, it will invite suspicion that Taiwan is supporting income inequality, tax evasion, money laundering and other irregular activities.
When it became clear that the world was entering a new era with a radical change in the US’ global stance in US President Donald Trump’s second term, many in Taiwan were concerned about what this meant for the nation’s defense against China. Instability and disruption are dangerous. Chaos introduces unknowns. There was a sense that the Chinese Nationalist Party (KMT) might have a point with its tendency not to trust the US. The world order is certainly changing, but concerns about the implications for Taiwan of this disruption left many blind to how the same forces might also weaken
As the new year dawns, Taiwan faces a range of external uncertainties that could impact the safety and prosperity of its people and reverberate in its politics. Here are a few key questions that could spill over into Taiwan in the year ahead. WILL THE AI BUBBLE POP? The global AI boom supported Taiwan’s significant economic expansion in 2025. Taiwan’s economy grew over 7 percent and set records for exports, imports, and trade surplus. There is a brewing debate among investors about whether the AI boom will carry forward into 2026. Skeptics warn that AI-led global equity markets are overvalued and overleveraged
Japanese Prime Minister Sanae Takaichi on Monday announced that she would dissolve parliament on Friday. Although the snap election on Feb. 8 might appear to be a domestic affair, it would have real implications for Taiwan and regional security. Whether the Takaichi-led coalition can advance a stronger security policy lies in not just gaining enough seats in parliament to pass legislation, but also in a public mandate to push forward reforms to upgrade the Japanese military. As one of Taiwan’s closest neighbors, a boost in Japan’s defense capabilities would serve as a strong deterrent to China in acting unilaterally in the
Taiwan last week finally reached a trade agreement with the US, reducing tariffs on Taiwanese goods to 15 percent, without stacking them on existing levies, from the 20 percent rate announced by US President Donald Trump’s administration in August last year. Taiwan also became the first country to secure most-favored-nation treatment for semiconductor and related suppliers under Section 232 of the US Trade Expansion Act. In return, Taiwanese chipmakers, electronics manufacturing service providers and other technology companies would invest US$250 billion in the US, while the government would provide credit guarantees of up to US$250 billion to support Taiwanese firms
RSS