The Cabinet yesterday passed draft amendments to the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (台灣地區與大陸地區人民關係條例) that would increase fines for Chinese or Chinese institutions that illegally invest in Taiwan.
The draft bill has been listed as a priority for the current legislative session.
Under the proposed amendments, any Chinese investor or enterprise that invests in Taiwan without getting permission from the authorities could be subject to a fine ranging from NT$50,000 to NT$25 million (US$1,633.88 to US$816,940), compared with the current range of NT$120,000 to NT$600,000, plus rectification.
Photo: CNA
Failure to rectify the matter could lead to consecutive fines until the situation is remedied.
The Mainland Affairs Council was prompted to amend the law by a 2016 case in which Chinese investors purchased about NT$1 billion of Tatung Co (大同) shares through SinoPac Securities (Asia) Ltd (永豐金證券亞洲), a Hong Kong-based brokerage subsidiary of SinoPac Financial Holdings Co (永豐金控), in a breach of the rules governing cross-strait investments, MAC Deputy Minister Lee Li-jane (李麗珍) told a news conference at the Executive Yuan in Taipei.
The Chinese investors were fined just NT$600,000 under Article 93-1 of the act, which drew public protests and calls for change, Lee said.
The fines could also be increased depending on the amount of profits made through investments deemed to be illegal, Deputy Minister of Justice Chen Ming-tang (陳明堂) told the news conference.
“If a Chinese person or institution made more than NT$25 million in profit from such illegal investments, Item 2, Article 18 of the Administrative Penalty Act (行政罰法) would allow the government to raise the fine to the amount of the illegal gain,” Chen said.
For instance, if a Chinese investor was found to have made NT$100 million from an illegal investment in Taiwan, they could face a maximum fine of NT$100 million, Chen said.
Under the proposal, any Chinese enterprise allowed to invest in Taiwan that contravenes the rules — such as failure to file financial statements and illegally reinvesting — could face a fine ranging from NT$50,000 to NT$2.5 million, up from the original range of NT$60,000 to NT$300,000.
The proposed amendments include a provision to punish any Chinese enterprise that evades, impedes or refuses inspections by the authorities.
Another provision would allow minor violators of the law to be exempted from fines if they are able to remedy the situation within a specified time period.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old