Beware of Tax Penalties for False Invoices and Unreported Business Income

• Businesses without actual purchases obtaining false documents for tax deductions may face tax recovery and penalties.
• Reporting false input tax amounts can lead to business tax evasion charges and fines up to five times the evaded tax.
• If false documents are used as business costs for income tax, they must be removed, and fines up to two times the evaded tax may apply.
• Underreporting business income can lead to additional taxes on undistributed earnings with fines up to one time the evaded tax.
• Example: Company A used false invoices for tax deductions, resulting in tax recovery and fines.
• Businesses are advised not to use false documents for tax purposes and should report and pay any evaded taxes voluntarily to avoid penalties.
• For tax inquiries, contact local tax offices or call the free service number.

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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