Given to the subject of supervisory changed, the deregistration of tax ID number is required upon the change of the responsible person for trade name in sole proprietorship and the new tax ID number shall be registered with the name of new responsible person. The original responsible person shall provide the new responsible person with the inventory and issued uniform invoices. Then, the business tax shall be declared and paid within 15 days from the date of transfer, the input tax which is incurred by receiving the uniform invoice can be declared and offset the out put tax by prescribed laws.
Responsible person A of a trade name in sole proprietorship was changed into B and the inventory in value of TWD31,000,000 and fixed property in value of TWD1,200,000 were transferred but failed to issue with the uniform invoice and declare the business tax by the prescribed laws, which this fact was found out by Taiwan Taxation Bureau. The uniform invoices were failed to issue and the amount of sales income failed to declare was about TWD 32,200,000 which is verified by Taiwan Taxation Bureau. Except for recovering this amount of tax by the prescribed laws, the trade name shall be imposed with a fine of TWD 10,000,000 for evasion of tax this behavior.
On the other side, responsible person B failed to procure the input documentary evidence shall also face the punishment by article 44th in Tax Collection Act: “Where a profit-seeking enterprise fails to provide or obtain certificates to or from others or to keep certificates as required by the law, a fine in an amount equivalent to five percent (5%) of the total amount of the relevant certificates as verified and determined shall be imposed on such enterprise.”
Despite of the trade name in sole proprietorship running their business in the form of trade name, the nature of this business is still affiliated as individual enterprise, so the subject of supervisory shall be deemed as natural person. The subject of supervisory shall be as changed as the responsible person of trade name in sole proprietorship. As a result, Upon the change of responsible person for trade name in sole proprietorship, the transfer of inventory and fixed property shall be deemed as sales of goods and issued with the uniform invoice to declare the business tax.
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