C.C.S.
Judgement
Date
Holding
No. 1
2014.07.15
The Ministry of Finance Memorandum Tai Tsai Shui No. 890457254 of October 19, 2000 on interpreting the means to determine unreported taxable income under Article 51, Section 3 of the Value-added and Non-value-added Business Tax Act, submits that for taxpayers who underreported or misreported sales amount but provided valid value-added tax input certification only after being investigated and discovered, no output tax amount may be deducted by the tax levying agency in calculating the tax shortage. It’s ignored the basic structure of value-added tax, burdened the nation with extra tax without explicitly provided, and shifted the burden of proof unduly. The issued part of the Memorandum violated due process of law required by Article 19 of the Constitution.