With the advancement of Internet technology and the widespread use of mobile devices, various online auction platforms or social media have become one of the channels for people to shop and consume. The IRS often receives reports from the public about sellers evading taxes based on the number of transaction reviews or the number of items sold shown on the auction websites. However, if such reports do not provide specific evidence for investigation, the IRS will not initiate an investigation.
The Southern District National Taxation Bureau of the Ministry of Finance stated that web page information such as transaction evaluations and the number of products sold are mostly business practices such as merchants self-inflating evaluation numbers or advertising marketing in order to increase sales, and it is impossible to determine the fact of completed transactions. In addition, such evaluations and the number of products sold are subject to the provisions of Point 16 of the "Operational Guidelines for Tax Collection Agencies at All Levels to Handle Illegal Tax Evasion and Report Cases" set by the Ministry of Finance, which refers to the Internet, newspapers, government gazettes, radio and television, or other public information that can be obtained by the general public. When the National Taxation Bureau receives such reports, it will notify the reporter to correct the specific illegal facts and evidence within a time limit in accordance with the provisions of the above-mentioned operational guidelines. If the facts and evidence are not provided within the time limit, the National Taxation Bureau may waive the discussion and close the case.
The bureau reminds that when reporting online sellers for tax evasion, it is necessary to provide documents such as the name of the online platform, website, seller account, transaction date, product name, quantity, amount and payment proof, and the IRS will initiate an investigation. The bureau also calls on business operators who sell through the Internet, regardless of how they sell goods or services, to honestly issue invoices in accordance with the time limit table for issuing sales receipts by business operators to avoid penalties.
Contact person for press release: Sales Tax Section Chief Lin 06-2223111#8085
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