Branch Tax Evasion Penalties Depend on Consolidated Tax Filing Status of Business Entity

• Branches involved in tax evasion are subject to penalties based on whether they apply for consolidated tax reporting.
• According to tax law, if approved by the Ministry of Finance, sales by the main and branch offices are reported by the main office.
• If a branch is involved in tax evasion, the main office is the subject of penalties.
• An example is given where a branch made errors in tax reporting but met criteria for penalty exemption.
• If the main office has multiple violations within a year, it may not qualify for penalty exemption.
• Businesses must report sales and taxes to local authorities unless they apply for consolidated reporting.
• For questions, contact the free service number or visit the tax bureau’s website.

Source: mof.gov.tw

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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