Ding Yuan-chin (
Ding is the former head of the National Police Administration and previous chief of the Taipei City Police Headquarters. New Party city councilors Lee Ching-yuan (
The Inheritance and Donation Tax Law stipulates that any cash gift greater than NT$600,000 is subject to taxation.
Ding claimed on Tuesday that to buy a house in Vision City (世界山莊) worth NT$38 million, he gathered NT$6 million from his only son and borrowed NT$20 million from one of his good friends.
"For the NT$6 million, Ding should've paid 21 percent of the amount, or NT$1.2 million, as required by law," Chung said.
Fines for failing to pay the donation tax is twice the amount taxed. In other words, Ding is subject to a fine of NT$2.4 million for failing to pay the NT$1.2 million tax, Chung said.
Although Ding claimed that he borrowed NT$20 million from one of his close friends, it's a loan with zero interest and no official records indicate that he has used another apartment in Taipei's Peining Road (
Therefore, Chung said from a legal point of view, the NT$20 million should be considered as a cash gift as well.
According to the donation tax law, a 34 percent tax is levied on a gift amounting to between NT$14 million and NT$29 million. In other words, the tax for the NT$20 million donation should be NT$6.8 million.
Because fines for failing to pay the donation tax are twice the amount of the original tax, the fine for not paying the NT$6.8 million donation tax should be NT$13.6 million.
Lee also said that Ding has been lying since the news broke on July 7.
"In the beginning, he said that his daughter wired NT$7 million from abroad to help him purchase the house. Then he claimed in Tuesday's press conference that his son gave him NT$6 million," Lee said.
In addition to suspicious financial connections with Ong Da-ming (
Ding currently serves as president of the Pan-Pacific Venture Capital Corp (
Lee also pointed to irregularities with Ding's bank account.
"Overall, he had a NT$4.2 million increase after he became the head of the National Police Administration in 1997," he said.
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