If a taxpayer has paid one-third (1/3) of the amount of tax payable made in a recheck decision or furnished an equivalent collateral as security and filed an administrative appeal in due course, compu
The National Taxation Bureau of the Northern Area (NTBNA), Ministry of Finance says that the revision of Article 39 of the Tax Collection Act was announced by the President on December 17, 2021 and came into effect on December 19, 2021. If a taxpayer is in disagreement with the decision made in a tax assessment notice and a recheck, and has filed an administrative appeal and has paid one-third (1/3) of the amount of tax payable made in a recheck decision or furnished an equivalent collateral as security, compulsory execution of payment of such tax due will be held in abeyance.
The NTBNA explains that according to Paragraph 2, Article 39 of the Tax Collection Act revised and announced, the ratio of payment of the amount of tax payable made in a recheck decision that a taxpayer should pay so that compulsory execution of payment of such tax due will be held in abeyance has been revised down. The revision stipulates that if a taxpayer has paid one-third (1/3) of the amount of tax payable made in a recheck decision or furnished an equivalent collateral as security and filed an administrative appeal in due course, compulsory execution of payment of such tax due will be held in abeyance. The said “tax payable” refers to tax itself only. The said “paid one-third (1/3) of the amount of tax payable” refers to “paid one-third (1/3) of the amount of tax” and the daily interest accrued on the amount of such supplementary tax is not included. In order to maintain legal certainty, however, for cases that have been transferred to administrative law enforcement agencies for enforcement before the revision on November 30, 2021 or whose enforcement has been suspended because one-half (1/2) of the amount of tax payable made in a recheck decision had been paid or an equivalent collateral as security has been furnished, the provisions before the revision shall apply.
The NTBNA illustrates with an example. Company A disagreed with the NT$2 million Profit-seeking Enterprise Income Tax of year 2018 assessed by the NTBNA and filed an application in the statutory format for recheck. The decision made in the recheck included that the tax payable reduced to NT$1.5 million and the daily interest accrued on the amount of such tax should be levied. Company A still disagreed with the decision made in the recheck, so it filed an administrative appeal in due course on February 10, 2022 and paid NT$0.5 million (NT$1.5 million X 1/3=NT$0.5 million) according to Paragraph 2, Article 39 of the revised Tax Collection Act, which was one-third (1/3) of the amount of tax payable made in the recheck decision. The NTBNA immediately held the compulsory execution of payment of such tax due in abeyance.
The NTBNA would like to remind taxpayers that, in order not to be referred to compulsory execution, taxpayers should pay 1/3 of the amount of tax payable made in a recheck decision or furnished an equivalent collateral as security when they disagree with the tax payable made in the recheck decision and file an administrative appeal. If you have further questions, please dial the toll-free service number 0800-000321 for inquiries.
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=54d32c81e48147b7954fdf96223c92de