萬國法律事務所

The Ministry of Justice has proposed an amendment to Administration Enforcement Law that would cap spending limits of tax debtors at a certain amount depending on their domicile. The proposed amendment is also dubbed the Jack Sun Clause as the amendment is aimed to prohibit tax debtors such as Mr. Jack Sun from continuing living luxurious life.

Under the amendment, administration enforcement agencies may issue orders to prohibit tax debtors from conducting certain behaviors if they are found to lead an exorbitant way of life, which includes prohibiting the tax debtors from spending beyond a limited amount of money, taking specified vehicles, buying, borrowing or using products or services exceeding a certain level of value, bestowing or lending money beyond a specified amount, patronizing specified establishments or facilities, making investments, and conducting other actions that the agencies deem inappropriate.

The Ministry of Justice said it will use the report on average monthly expenditure of residents of each county published periodically by Directorate-General of Budget, Accounting and Statistics of the Executive Yuan as a reference to set the spending cap of the tax debtors. For example, the average monthly expenditure of Taipei city residents is NT$24,357 and hence the spending limits for tax debtors residing in Taipei city will be capped at the same amount.

If the tax debtors violate the orders issued by the administration enforcement agencies, they will be deemed to be financially capable of paying the overdue taxes. The agencies may request such tax debtors to repay the overdue tax payments within a specified period of time or report their financial status. Moreover, if the tax debtors decline such request, the administration enforcement agencies may move to restrict their residences or apply to the court to take them into custody.

The Ministry of Justice has submitted the proposed amendment to the Executive Yuan on October 13, 2009 in the hope that the Legislative Yuan may pass the amendment by the year’s end.