Enabled by Article 24, Paragraph 3, of the Tax Levy Act and Article 25-1-III of the Customs Act, the Regulations Governing the Restriction on the Persons or Representatives of Profit-Making-Enterprise Defaulting on Tax Payments to Apply for Exit Permit were amended and promulgated by the Executive Yuan on July 10, 1984.  The provisions of Article 2, Paragraph 1, thereof do not go beyond the objective and scope of the aforesaid laws and, pursuant to Article 5 thereof, the exit restrictions imposed on a taxpayer shall be lifted if one of the six situations set forth therein occurs, which also consider the rights and interests of the taxpayer.  The aforesaid measures are necessary to ensure tax revenues and promote public interest and thus do not contradict the Constitution.

       Article 24, Paragraph 3, of the Tax Levy Act provides, “If a taxpayer’s delinquency in tax payment involves a certain amount, the judicial authorities or the Ministry of Finance may request in writing that the Entry and Exit Service Bureau of the Ministry of the Interior prohibits the taxpayer or, in the case of a profit-seeking enterprise, the responsible person thereof, from leaving the country, provided that such restriction shall be lifted if adequate guaranty is furnished by such taxpayer.  The implementing rules in respect thereof shall be prescribed by the Executive Yuan.”  Article 25-1, Paragraph 3, of the Customs Act also provides to the same effect. The Regulations Governing the Restriction on the Persons or Representatives of Profit-Making-Enterprise Defaulting on Tax Payments to Apply for Exit Permit was amended and promulgated by the Executive Yuan on July 10, 1984, under the express delegation of the aforesaid laws.  Article 2, Paragraph 1, thereof provides, “Where an individual residing in the ROC or a profit-seeking enterprise located within the ROC defaults on tax payments or customs duties whose amount is determined within the time limit prescribed by applicable laws, and the aggregate amount of such overdue tax payments and the determined fine imposed thereon, if any, reaches five hundred thousand New Taiwan dollars (NT$500,000) in the case of an individual, or one million New Taiwan Dollars (NT$1,000,000) in the case of a profit-seeking enterprise, the tax collection authorities or the customs concerned shall report to the Ministry of Finance, which shall, in turn, request the Entry and Exit Service Bureau of the Ministry of the Interior in writing to prohibit the tax-delinquent individual or responsible person of a profit-seeking enterprise from leaving the country.”  The foregoing provisions do not go beyond the objective and scope of the aforesaid laws and, pursuant to Article 5 of the same Regulations, the exit restrictions imposed on a taxpayer shall be lifted if one of the six situations set forth therein occurs, which also consider the rights and interests of the taxpayer.  The aforesaid regulations are necessary to ensure tax revenues and promote public interest and thus do not contradict either Article 10 or Article 23 of the Constitution.

*Translated by Vincent C. Kuan