Taiwan’s National Taxation Bureau of Central Area (NTBCA), in a Sept. 10 press release, said that it denied a company a deduction for a capital loss arising from the company’s ownership of a non-operating overseas holding company which held a lower tier investee company that had operating losses. The NTBCA said that the taxpayer was denied a deduction of about 25 million Taiwan dollars for tax year 2011 because the company failed to provide appropriate documentation to prove realized capital losses under article 99 of The Guideline for Tax Audit.
The NTBCA advised taxpayers to study the relevant rulings and regulations to avoid penalties and extra tax. For more details, see the release.
