Income Tax Act Article 114-2

Before December 31, 2017, under any of the following circumstances, a profit-seeking enterprise shall be ordered to pay the amount of the imputation tax credit of over-distributed surplus earnings, and shall be subject to a fine in an amount no more than the said amount of over-distributed surplus earnings:1. The profit-seeking enterprise has violated Paragraph 2 of Article 66-2, Article 66-3, or Article 66-4 of this Act in force at the time the commission occurs by falsely increasing the amount in the imputation credit account, or short-reporting the amount of balance in the account of booked accumulation of retained surplus earnings set forth in Article 66-6 hereof in force at the time the commission occurs, to the extent that the amount of imputation tax credit actually allocated to shareholders or members has exceeded the amount of imputation tax credit which may be allocated to shareholders.2. The profit-seeking enterprise has violated Paragraph 1 of Article 66-5 hereof in force at the time the commission occurs because the amount of imputation tax credit allocated by it to its shareholders or members has exceeded the amount of balance in its imputation credit account as booked as of the date of distribution of dividends or other surplus earnings.3. The profit-seeking enterprise has violated Article 66-6 hereof in force at the time the commission occurs when distributing the net dividend by using a tax deduction ratio which is higher than the designated ratio for such purpose, whereby the amount of imputation tax credit actually allocated to its shareholders has exceeded the amount of imputation tax credit to be calculated in accordance with this Act.Before December 31, 2017, where a profit-seeking enterprise has violated Article 66-7 hereof in force at the time the commission occurs by allocating the amount of imputation tax credit to its shareholders or members for them to offset the income tax payable by them, the said profit-seeking enterprise shall be ordered to pay, within a given time limit, the amount of imputation tax credit so allocated by it, and shall be subject to a fine in an amount no more than the amount allocated.In case the profit-seeking enterprise set forth in the preceding two paragraphs has suspended business, closed down or moved to an unknown place, the competent tax authority shall collect from the shareholders or members of the said enterprise the amount of imputation tax credit which was over-allocated or unlawfully allocated by the said enterprise to its shareholders or members.