Taiwan's hi-tech industries may escape a disputed alternative tax decree

Taiwan's hi-tech industries may escape a controversial alternative-tax decree, which is due to be issued by the end of this year, after Premier Frank Hsieh recently said that procedure justice should be taken into consideration if the government laws are to be revised.

The Ministry of Finance (MOF) originally planned to issue an administrative decree by the end of this year asking the island's hi-tech enterprises to choose one of the to preferential taxation programs, namely five-year tax holiday and investment tax credit. However, the Ministry of Economic Affairs strongly suggested that the government should revise the laws on which the decree is based, so as to legalize the taxation changes.

Premier Hsieh, after hearing criticisms from the island's hi-tech gurus including Chairman Morris Chang of Taiwan Semiconductor Manufacturing Co. (TSMC), said that the government should stick to procedure justice in revising relevant laws, suggesting his support for the MOEA suggestion.

Chang pointed out that if the government put the decree into effect abruptly, the island's hi-tech enterprises would be eligible to launch executive appeals against the implementation.

source & copyright: CENS