2015-04-13
National Taxation Bureau to Extend Use of Provisional Attachment
To prevent people who owe taxes from disposing of their property in an attempt to evade tax liability, Taiwan’s National Taxation Bureau for the Central Area has been applying for provisional attachments by lodging securities with the civil courts before the amount of taxes due is ascertained. Last year, the Taxation Bureau selected seven cases for this procedure and all of these were successful. Therefore, the National Taxation Bureau will extend the use of provisional attachments.
The National Taxation Bureau for the Central Area explained that the Bureau can apply for provisional attachments at administrative courts without providing any security in advance. The problem faced by the Tax Bureau is that people who owe taxes, if not satisfied with the amount due, can apply for confirmation, and they can then dispose of their property in a very short time.
Thus, the National Taxation Bureau was frequently unable to collect after the correct amount of taxes due was ascertained. In additional, it was obviously difficult to collect taxes after the disposal of property. Thus, the National Taxation Bureau for the Central Area changed its collection method last year. Typically, an application with the civil courts for provisional attachments requires sufficient evidence and a security lodged in advance. The National Taxation Bureau, which lacked a budget to provide such security, even used the secondary reserve fund of the Executive Yuan to provide securities lodged in advance. Finally, The National Taxation Bureau for the Central Area was able to collect NT$ 28 million in taxes owed via provisional attachment.
This success by the National Taxation Bureau for the Central Area has encouraged the National Taxation Bureaus in other areas to utilize this solution for dealing with difficulties in collecting taxes. The Ministry of Finance has thus decided to permit all tax offices to use this collection method.
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