Experts Warn Against Evading Property Tax Through Combining House and Land Tax – Liberty Times
In a recent development, the Ministry of Finance has issued a stern warning to individuals who believe they can avoid property tax by combining house and land tax. Contrary to popular belief, not only will those caught face additional tax burdens, but they could also be subject to fines.
**Legal Obligation to Declare House and Land Tax**
According to the Ministry of Finance, any individual who acquires a property post-January 1, 2016, through a court-ordered auction resulting in a transfer of ownership must declare the house and land tax, regardless of whether they make a profit or incur losses.
**Deadline for Tax Declaration**
The Southern Region Taxation Bureau of the Ministry of Finance emphasized that the house and land tax system has been in effect since January 1, 2016. Individuals involved in transactions subject to the house and land tax, whether through voluntary sale or court-ordered auction, must declare and pay the tax within 30 days from the date of ownership transfer registration or the date the transferee receives the right transfer certificate.
**Illustrative Example**
To clarify the consequences of non-compliance, the bureau provided an example involving an individual, “甲君,” who purchased a property for 9 million NT dollars in May 2022 but faced financial difficulties leading to a forced auction in November 2022 with a winning bid of 10 million NT dollars. Despite not receiving the full auction amount to clear debts, “甲君” mistakenly assumed they were exempt from declaring the house and land tax.
**Penalties for Non-Compliance**
Upon investigation, the tax bureau determined that “甲君’s” property fell within the house and land tax scope, resulting in a taxable income of 700,000 NT dollars. Apart from the supplementary tax, penalties were enforced as per regulations.
**Final Reminder**
The tax bureau stressed the importance of proactive tax declaration in cases where properties are auctioned by the court, emphasizing that individuals, regardless of profit, must comply to avoid penalties. In cases of unintentional oversight, individuals have the option to voluntarily rectify their tax declaration to avoid fines before being subject to official investigations.
Remember, ignorance is not an excuse when it comes to tax obligations. Stay informed and abide by the regulations to steer clear of unnecessary financial penalties.
