After OBI Pharma last week issued a statement apologizing for failing to register sales of shares by one of its major shareholders as required, people are wondering if other companies listed on the local bourse have also broken the law and should come under scrutiny.
OBI Pharma on Wednesday said that senior finance manager Chang Sui-fen (張穗芬) had failed to register stock trading activities by Alpha Corporate Holdings Ltd, after investigators found the British Virgin Islands-registered company sold OBI Pharma shares worth several hundred million New Taiwan dollars in October last year, which Chang allegedly concealed.
This violated the declaration procedure for publicly listed companies in Taiwan regarding their shareholding changes, and OBI Pharma is likely to face a fine of between NT$240,000 and NT$2.4 million (US$7,423 and US$74,234) under the Securities and Exchange Act (證交法).
OBI Pharma shares have gone into free-fall since Feb. 21, when the firm announced that second and third-phase clinical trial results of a new breast cancer vaccine showed “no statistical significance,” followed by insider-trading allegations involving a number of high-ranking executives and Academia Sinica President Wong Chi-huey (翁啟惠).
The firm said it would begin an internal investigation and take appropriate action in a bid to limit the fallout, but that has not been enough to stave off criticism after media outlets reported that OBI Pharma chairman Michael Chang (張念慈) was a key figure in Alpha Corporate Holdings.
Investigators are still trying to clarify if the British Virgin Islands entity is a shell company set up by Michael Chang to hide his investment profits and whether Chang Sui-fen was under pressure from her superiors to conceal the change in the company’s shareholding structure.
However, questions have also been raised about whether regulators have turned a blind eye to an increasing number of local businesses that have sought shelters from tax laws in places such as the British Virgin Islands, the Cayman Islands and other tax havens.
Samoa and Mauritius are also on the “best” tax haven-list for Taiwanese to register offshore companies. Interestingly, another of OBI’s major shareholders is a Taiwanese company registered in Samoa whose representative is Yang Shih-chien (楊世緘), a national policy adviser to President Ma Ying-jeou (馬英九).
Not all Taiwanese companies registered overseas engage in illegal activities. Many Taiwanese businesses set up overseas-registered entities when the government relaxed restrictions on business investments in China, a move that was aimed at helping them contain the risk of those investments affecting their home market operations. Nowadays, many individuals and companies set up offshore entities to enjoy lower tax rates on capital gains, while a few firms use overseas registries or shell companies to hide assets from tax authorities, help launder the proceeds of criminal activities or conceal misappropriated wealth.
In the case of OBI Pharma, financial authorities and investigators need to find out if high-ranking executives or major shareholders used offshore entities to avoid taxation and financial oversight. However, what was once a single company’s problems are seemingly growing into a regulatory issue and more than just an insider-trading scandal.
If the government does not act swiftly to fix shortcomings in the taxation system and cannot move forcefully enough against the illegal use of offshore companies based in tax havens, it will invite suspicion that Taiwan is supporting income inequality, tax evasion, money laundering and other irregular activities.
I came to Taiwan to pursue my degree thinking that Taiwanese are “friendly,” but I was welcomed by Taiwanese classmates laughing at my friend’s name, Maria (瑪莉亞). At the time, I could not understand why they were mocking the name of Jesus’ mother. Later, I learned that “Maria” had become a stereotype — a shorthand for Filipino migrant workers. That was because many Filipino women in Taiwan, especially those who became house helpers, happen to have that name. With the rapidly increasing number of foreigners coming to Taiwan to work or study, more Taiwanese are interacting, socializing and forming relationships with
Earlier signs suggest that US President Donald Trump’s policy on Taiwan is set to move in a more resolute direction, as his administration begins to take a tougher approach toward America’s main challenger at the global level, China. Despite its deepening economic woes, China continues to flex its muscles, including conducting provocative military drills off Taiwan, Australia and Vietnam recently. A recent Trump-signed memorandum on America’s investment policy was more about the China threat than about anything else. Singling out the People’s Republic of China (PRC) as a foreign adversary directing investments in American companies to obtain cutting-edge technologies, it said
The recent termination of Tibetan-language broadcasts by Voice of America (VOA) and Radio Free Asia (RFA) is a significant setback for Tibetans both in Tibet and across the global diaspora. The broadcasts have long served as a vital lifeline, providing uncensored news, cultural preservation and a sense of connection for a community often isolated by geopolitical realities. For Tibetans living under Chinese rule, access to independent information is severely restricted. The Chinese government tightly controls media and censors content that challenges its narrative. VOA and RFA broadcasts have been among the few sources of uncensored news available to Tibetans, offering insights
“If you do not work in semiconductors, you are nothing in this country.” That is what an 18-year-old told me after my speech at the Kaohsiung International Youth Forum. It was a heartbreaking comment — one that highlights how Taiwan ignores the potential of the creative industry and the soft power that it generates. We all know what an Asian nation can achieve in that field. Japan led the way decades ago. South Korea followed with the enormous success of “hallyu” — also known as the Korean wave, referring to the global rise and spread of South Korean culture. Now Thailand
RSS