Income Tax Act Article 111-1

Where the trustee of a trust deed is found to have underdeclared or omitted the declaration of any revenue accrued on the trust property, or made false declaration of any relevant costs, necessary expenses and/or losses, and thus has caused an undercalculation of the amount of trust beneficiaries' income as required in Paragraphs 1, 2, 5, and 6 of Article 3-4, or has failed to accurately sort the categories of the beneficiaries' income, and thus has caused a reduction of trust beneficiaries' tax-paying obligations, the trustee shall be subject to a fine in an amount equal to five percent of the amount of underdeclared or evaded income of trust beneficiaries or the amount of incorrectly sorted income of such beneficiaries. The amount of the fine, however, shall not exceed NT$300,000 or be less than NT$15,000.Where the trustee of a trust deed fails to calculate the amount of trust beneficiaries' income from different categories of income in accordance with the proportions set out in Paragraph 2 of Article 3-4 of this Act, the said trustee shall be subject to a fine in an amount equal to five percent of the deficit between the amount of income calculated by the trustee and the amount of income to be calculated in accordance with the applicable proportions. The amount of the fine, however, shall not exceed NT$300,000 or be less than NT$15,000.Where the trustee of a trust deed fails to file in time or to file an accurate tax withholding return or fails to prepare and issue the relevant documents, withholding tax statements, non-withholding tax statements, other relevant certificates or receipts as required in Article 92-1 hereof, the said trustee shall be subject to a fine in the amount of NT$7,500, and in addition thereto, shall be required to make a supplemental filing or issuing within a given time limit. Where the trustee fails to make such supplemental filing or issuing within the given deadline, it shall be subject to a fine in an amount equal to five percent of the amount of revenue accrued on the trust property in the then current year. The amount of the fine, however, shall not exceed NT$300,000 or be less than NT$15,000.