Industrial Innovation Statute Article 67-2

If an enterprise eligible for the tax benefit under Article 23-1 is in one of the following situations, the taxation authority shall impose penalties according to the relevant subparagraphs:1. Where the enterprise fails to file an annual income tax return within the prescribed period set forth in Article 71 of the Income Tax Act, but subsequently files the annual income tax return in accordance with Paragraph 1, Article 79 of the Act, it shall pay a delinquent reporting surcharge equal to ten percent of the tax calculated at the profit-seeking enterprise income tax rate applicable in the current year on its annual income determined by the taxation authority through investigation. The amount of the delinquent reporting surcharge shall not exceed NT$30,000 but shall not be less than NT$1,500.2. Where the enterprise further fails to file an annual income tax return within the time limit prescribed in Paragraph 1, Article 79 of the Income Tax Act, it shall pay a late filing fee equal to 20% of the tax calculated at the profit-seeking enterprise income tax rate applicable in the current year on its annual income determined by the taxation authority through investigation. The amount of the late filing fee shall not exceed NT$90,000 but shall not be less than NT$4,500.3. Where the enterprise has filed an annual income tax return, or its final report on total business income or income earned from liquidation, but has under-declared or omitted to declare any income, it shall pay a fine of up to two times the tax calculated at the profit-seeking enterprise income tax rate applicable in the current year on the income it has under-declared or omitted to declare.4. Where the enterprise fails to file an annual income tax return, or its final report on total business income or income earned from liquidation in accordance with the Income Tax Act, and the taxation authority finds through investigation that the enterprise has under-declared or omitted to declare its taxable income assessed in accordance with the Act, it shall pay a fine of up to three times the tax calculated at the profit-seeking enterprise income tax rate applicable in the current year on the income it has under-declared or omitted to declare.5. Where the enterprise fails to calculate each partner’s income from seeking profits in proportion to the earnings distributed to the partner in accordance with Paragraph 2, Article 28 of the Limited Partnership Act, it shall pay a fine equal to five percent of the difference between the amount of income calculated by the enterprise and the amount of income calculated in accordance with the applicable proportion. The fine shall not exceed NT$300,000 but shall not be less than NT$15,000.6. Where the enterprise fails to file the documents under Paragraph 6 of Article 23-1 before the given deadline or makes any false statements in such documents, it shall pay a fine of NT$7,500 and file the documents or correct the statements within a time limit set forth in a notice. If it still fails to file the documents or correct the statements within the time limit, it shall pay a fine equal to five percent of the income not duly declared in the documents. The fine shall not exceed NT$300,000 but shall not be less than NT$15,000.Under any of the following circumstances, a tax withholder under Paragraph 7, Article 23-1 shall be subject to the applicable punishment set forth below.1. Where the tax withholder fails to withhold tax in accordance with Paragraph 7, Article 23-1, it shall be given a time limit for paying the tax not withheld or under-withheld and filing a supplemental tax-withholding certificates and shall also pay a fine of up to the amount of the tax that should have been withheld or was under-withheld. If the tax withholder fails to pay the tax amount it should have withheld or it under-withheld, or to submit correct tax-withholding certificates within the given time limit, it shall pay a fine of up to three times the tax amount which should have been withheld or was under-withheld.2. A tax withholder who has withheld taxes in accordance with Paragraph 7, Article 23-1 but fails to file a truthful tax-withholding return or issue a truthful tax-withholding certificate within the time limit prescribed in the same paragraph shall be given a time limit for supplemental filing the return or issuing the certificate and shall pay a fine ranging from NT$1,500 to NT$20,000. If a tax withholder fails to file a truthful tax-withholding return or issue a truthful tax-withholding certificate within a time limit as demanded by the taxation authority, the tax withholder shall pay a fine ranging from NT$3,000 to NT$45,000.3. A tax withholder who fails to pay the withheld tax within the time limit prescribed in Paragraph 7, Article 23-1 shall pay a surcharge for delinquent payment at one percent of the amount of the payment due for every three days of delay.