Taxation Authority Applied for a Provisional Seizure of Property and Successfully Collected Taxes After Taxpayer Attempted to Transfer Assets following Applying for Installment Payment of Taxes
The National Taxation Bureau of the Northern Area （NTBNA）, MOF stated that according to Subparagraph 2, Paragraph 1, Article 24 of the Tax Collection Act, in the event that the tax authority finds that a taxpayer who owes taxes has signs of concealing or transferring property or evading tax enforcement, it may apply to the court for a provisional seizure of his/her properties to ensure smooth tax collection.
NTBNA illustrates this with an example. Company A within its jurisdiction falsely reported expenses for its profit seeking enterprise income tax of year 2020, and then NTBNA confirmed a supplementary tax of NT$14.39 million. In addition, the company applied for installment payment of the NT$1.09 million in self-assessed tax for the same fiscal year. However, there were still six installments totaling NT$270,000 that had not been paid, resulting in a total overdue tax of NT$14.66 million. Yet, in October of year 2020, Company A transferred three pieces of real estate under its name to Company B, a management consulting company. This indicated an obvious attempt to evade tax enforcement by transferring assets. To safeguard the tax, NTBNA promptly applied for provisional seizure to the competent court. The court granted the provisional seizure of Company A's property within the NT$14.66 million range, and NTBNA immediately applied to the branch of the Administrative Enforcement Agency, Ministry of Justice for provisional seizure enforcement. The Agency promptly issued decrees for the company's deposits, vehicles, subsidies, and project funds. On the day of seizure, Company A paid the remaining installment tax of NT$270,000 and applied to directly offset the owed tax with the seized deposit. The case was successfully recovered in full.
The Bureau would like to remind taxpayers that, if tax collection authorities find signs of concealment or transfer of property, or tax evasion, they will immediately initiate the provisional seizure mechanism in accordance with the law. Therefore, taxpayers are urged not to harbor illusions, intentionally hide or transfer property, and evade their tax payment obligations, in order to avoid property being provisionally seized and affecting economic activities. If there are any further questions, please dial the toll-free service number 0800-000321 for detailed consultation.
News contact: Ms. Wang, Head, Collection and Information Management Division.
Tel. No.（03）3396789, Ext. 1180
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=160ae4177f0744caaf50afc8faba3f24