Tax evasion investigation targets popular F&B chain stores in Taiwan

Taipei (The China Post/ANN) - The national tax administrations under Taiwan's Ministry of Finance (MOF) have zeroed in on several popular food and beverage chain stores for possible involvement in tax evasions, in a bid to rake in more tax revenue for the national coffers.

On the latest investigation list are 50-Lan coffee chain stores, CoCo tea chain stores, SiHaiYouLong fried dumpling chain stores, Taiyi Milk King near the National Taiwan University, Huhang Soybean Milk Store opposite the Shangdao Temple on the Zhongxiao East Road, as well as stores located in famous scenic attractions in Kenting National Park, Pingtung County, among others.

Originally, those cafeterias, fruit stores, and snack shops are exempt from issuing trading invoices even if their monthly revenue surpasses NT$200,000 (US$7,000). But since April this year, MOF has become less lenient to operators of such stores, and has ordered tax administrations island-wide to collect business taxes from the stores as long as they meet one of five criteria set by the Department of Taxation (DOT) under the ministry.

The five conditions are: franchised chain stores, issuing service number plates to consumers, issuing electronic receipts, sales via online channels, and stores with strong sales capability and able to issue trading invoices.

Officials with Taipei National Tax Administration noted that any stores meeting one of the above-mentioned criteria are found, for three times a year, to have failed to issue trading invoices, will see their business suspended for 7 to 14 days during the first failure, with longer suspension period for the second and third times.

In related news, the famous Huhang Soybean Milk Store located in the Huashan Market in downtown Taipei was forced to announce a one-month "vacation" starting from July 11 to August 9. Observers associated the suspension with the tax-evasion probe launched by the Taipei National Administration, but operators of the store said that the suspension was mainly caused by the shortage of labor force to serve consumers.

But taxation officials said that they would keep negotiating with Huhang Milk Store, hoping to persuade its operators to issue invoices as required.

Meanwhile, such other famous food and beverage chain stores as Taiyi Milk King, Chengzhong Fried Pork Chop w/Rice stores, SiHaiYouLong fried dumpling chain stores, 50-Lan coffee chain stores, and CoCo tea chain stores are also under persuasion by taxation units to issue invoices for their daily sales to consumers.

In response, top executives of CoCo tea chain stores said that they will fully comply with the requirement by the government, but they stressed that they have yet to be notified by taxation units to issue invoices.

On another front, small stores operating in famous scenic spots in Kenting National Park and Hengchun Township are also under investigation by taxation officials concerning whether they have evaded business taxes.

Officials with the national tax administration in southern Taiwan noted that quite a few people issued complaints to taxation units that many stores in Kenting National Park enjoyed very good sales records during the annual spring gathering events but failed to issue invoices to them. Accordingly, such stores have been placed on the tax investigation list.