TAIPEI: Taipei's High Administrative Court yesterday wrapped up hearings on a tax fine appeal that involved Chen Hsing-yu, daughter of former Taiwan leader Chen Shui-bian. Judgment was reserved until July 16.

The lawsuit was brought by Chen Hsing-yu and her husband Chao Chien-ming, in an attempt to overturn fines levied by tax authorities for tax evasion in 2002 and 2005.

The court heard that Chen and Chao failed to report NT$5.31 million of endorsement fees paid by the umbilical blood storage service Health Bank.

The omissions were discovered when Chao was investigated for insider trading in 2006. Chao was later sentenced to six years in prison for engaging in insider trading which netted him NT$4.27 million on investments in the Taiwan Development Corporation.

The "National Tax Administration" (NTA) ordered Chen to pay a NT$876,000 fine and NT$1.43 million in outstanding taxes. Chao was assessed NT$1.01 million in fines and NT$1.7 million for outstanding taxes.

Chen and Chao paid the outstanding tax on June 12, 2006 but not the fines. They want the fines waived on grounds that they "voluntarily paid the outstanding tax". NTA rejected their appeal, refusing to recognize their payment as voluntary since the omission was discovered by investigators.

China Daily/CNA

(HK Edition 07/10/2009 page2)