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Operation to track down tax evasion by dummy corporations

  • Publication Date :
  • Last updated:2019-07-18
  • View count:2105
Tax evasion abuses of dummy corporations cause social injustice. To let justice be served, branches of the Administrative Enforcement Agency (AEA), Ministry of Justice (MOJ), have recently enhanced the recovery of taxes in arrears of dummy firms and companies to rectify the abnormal dummy culture in society and exercise the monetary obligations of the country under public law. Business owners often register dummy firms and companies in the name of others and control such firms and companies behind the scene to avoid consequences caused by poor operations or lay their hands off when they are in arrears with taxes. Registered responsible persons also shirk their responsibility as they are not the real operators. As a result, it is difficult to recover taxes in arrears. Branches of the Administrative Enforcement Agency (AEA), Ministry of Justice (MOJ), thus aggressively investigate the property available for recovery of delinquent taxpayers involving dummy firms or companies still in operation and take any legal actions, such as property auction, restrictions on leaving the country, and remand, to force them to pay taxes in arrears. According to AEA, as long as they are legally responsible persons, those allowing others to register a firm or company under their names are obliged to immediately pay taxes in arrears. If they choose to sidestep, they will be very likely restricted from leaving the country. Therefore, AEA urges the public not to allow others to set up dummy firms or companies in their names AEA branches will persistently enhance recovery of taxes in arrears from dummy firms or companies without mercy to realize the country’s tax obligations and for the public to fully understand the government’s determination to exercise public authority. In 2017, a total of NT$33.72 million was recovered under the operation.
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