TAIPEI: A high court has upheld fines levied against the daughter and son-in-law of former Taiwan leader Chen Shui-bian for tax evasion. Chen Hsing-yu and Chao Chien-ming had appealed the fines imposed by the Taipei National Tax Administration. They asserted they had been unaware that income they had failed to report was taxable and pleaded that taxes owing on the income were paid when the matter was brought to their attention.

The Taipei High Administrative Court threw out the appeals noting the couple paid the taxes only after the administration discovered that the husband and wife failed to declare all of their income.

Chen and Chao have the right to further appeal.

The case arose from a 2006 probe by law enforcement officials after reports emerged that Chao Chien-ming had engaged in insider trading of stocks of Taiwan Development Corporation in 2005.

The subsequent investigation of the couple's income revealed that the couple, who filed joint tax returns, failed to report income from their advertising endorsements for a private cord blood bank in 2002 and 2005.

The Taipei National Tax Administration levied a fine of NT$876,000 ($26,610) on Chen Hsing-yu, in addition to requiring that she pay outstanding income taxes of NT$1.43 million.

Her husband was fined NT$1.01 million and his outstanding income taxes were calculated at NT$1.7 million.

Taking issue with the administration's decision, the couple appealed to the "Ministry of Finance" then later to the Taipei High Administrative court.

China Daily/CNA

(HK Edition 07/17/2009 page2)