2020/07/31 What specific evidence should you provide to report tax evasion by online sellers?

Online shopping has become a new consumption pattern at present. A variety of online shopping platforms have been springing up like mushrooms. For example, individuals sell goods through live streaming on famous social networking sites. The National Taxation Bureau of Central Area (NTBCA), Ministry of Finance (MOF) received a large number of reports that online sellers sold goods without issuing uniform invoices. Those online shopping platforms are exactly the same as tax havens.

The Bureau stated that people recently have been reporting tax evasion by online sellers by providing evidence gathered from the Internet, newspapers, magazines, official gazettes, and other information available to the public. The Bureau hereby notifies informants that they must provide specific evidence within a given time limit; otherwise, their cases will not be accepted.

Furthermore, the Bureau explained that people reporting tax evasion by online sellers should provide the following specific evidence for investigation:
i. Basic information about online sellers, for example, the name of the online shopping platform, domain name (or IP address), fan page or fan group, seller's name, contact information of sellers, etc.
ii. Transaction documents, for example, purchasing orders, waybills, delivery orders, etc.
iii. Proofs of payment, such as deposit book, check, remittance notes, credit card bill, seller’s bank accounts, etc.

The Bureau reminds the public that once the sales amount of an individual selling goods on online shopping platforms or social networking sites is above NT$80,000 (or NT$40,000 for selling services) per month, the individual should immediately apply for taxation registration and pay the business tax. For anyone who fails to file a tax declaration and pay the tax due to negligence or not being familiar with regulations, according to Article 48-1 of the Tax Collection Act, they should voluntarily file a supplementary tax declaration with the tax collection authorities and make supplementary payment covering the undeclared tax amount which they failed to declare plus the daily interest to avoid penalty, as long as it is neither a case brought about by an informant, nor a case under investigation by an investigator appointed by the tax collection authorities.

For more information, you are welcome to call our toll-free telephone number: 0800-000321. NTBCA will serve you with all sincerity.
News provided by Ms. Hui-Hsuan Hung, Revenue Officer, Third Examination Division, NTBCA, M.O.F.

TEL:04-23051111 Ext.7324