Criminal Law
1. Draft of Amendment to Criminal Code and Criminal Code of the Armed Forces
On 28 March 2019, the Executive Yuan passed the draft of amendment to Criminal Code and Criminal Code of the Armed Forces related to the drunk driving. We summarize the key points below:
(1) To add that the person who has committed the drunk driving under Article 185-3 of the Criminal Code or Article 54 of the Criminal Code of the Armed Forces and was convicted guilty by a court's final/conclusive judgment or the deferred prosecution disposition is confirmed, recommitted drunk driving and caused death to others within years, he/she shall be subject to life imprisonment of 7 years (or more) imprisonment; who caused serious injury to others, he/she shall be subject to 5 years (more) but less 12 years of imprisonment.
(2) To add that in the event that a person committed drunk driving and caused death to others with intention or reckless under Article 13 of the Criminal Code, he/she shall be subject to the liabilities of murder; a person committed drunk driving and caused serious injury to others, he/she shall be subject to the liabilities of assault.
Reported by: David Tsai / Naiju Kuan
Banking
2. Amendment to Banking Act
On 26 March 2019, the Legislative Yuan passed the third reading of the amendment to the Banking Act, which is pending the announcement by the President. We list the major points below:
(1) To require responsible persons to abide by non-compete obligations: To authorize the competent authority to prescribe regulations prohibiting involvement in conflict of interests by responsible persons of banks.
(2) To reinforce international cooperation in anti-money laundering: To stipulate that the government may enter into treaties or agreements with foreign governments, agencies, or international organizations, and provide necessary information to such foreign governments, agencies, or international organizations based on the principle of reciprocity and confidentiality.
(3) To update administrative control measures to effectively correct bank irregularities: To add the types of administrative impositions which may be taken by the competent authorities, such as limiting investments and ordering to wind down branches within a given period.
(4) Overall review of administrative fines in the penalty chapter: In order to enhance the effectiveness of financial supervision and to threaten illegal behaviors, to review the maximum amount of administrative fines in the penalty chapter. For material breach of banks, the maximum fine will be raised by a multiple of five (5), from NT$10 million to NT$50 million, while the maximum fine for the remaining provisions will be raised by a multiple of four (4). It is also added that the competent authority may adopt appropriate corrective measures rather than imposing fines for minor violations.
(5) To strengthen the management of credit card business: To increase penalties for violations of credit card business related management measures, and institutions operating credit card business are punishable.
(6) The consecutive penalties by "day" is amended to by "time".
Reported by: Stacy Lo / Eliza Lee
Securities and Exchange Act
3. Amendment to Securities and Exchange Act
On 26 March 2019, the Legislative Yuan passed the third reading of the amendment to the Securities and Exchange Act, which is pending the announcement by the President. We list the major points below:
(1) The audit committee is not required to approve the audited semi-annual financial reports.
(2) The time limit for the transfer of treasury stock provided under Article 28-2 is extended from 3 years to 5 years.
(3) Any person who acquires, either individually or jointly with other persons, more than ten percent of the total issued shares of a public company shall make a public announcement in addition to filing a report.
(4) The primary listed foreign companies on Taiwan Stock Exchange and Taipei Exchange and foreign companies traded on the emerging stock market shall establish a remuneration committee.
(5) The minimum amount of the administrative fines imposed on an underwriter for acquiring for its own account the securities underwritten by itself and the maximum amount of other administrative fines are increased.
Reported by: Stacy Lo / Cindy Chien
Statute for Industrial Innovation
4. Draft amendment to Statute for Industrial Innovation
On 21 March 2019, the Executive Yuan passed the amendment to the Statute for Industrial Innovation focusing on providing a stable environment for investment. We summarize the key points below:
(1) Where a state-owned enterprise is not in the form of a company or is a company established for the purpose of protecting right and interest of depositors, the requirement to allocate a portion of budgets to conduct R&D is not applicable.
(2) For stocks received by individuals as consideration of its intellectual property rights or acquired by academic creators, taxation of income tax upon the transfer of such stocks may be based on the "transferred price" or "acquisition price", whichever is lower, where relevant requirements are met.
(3) Tax deferral on employee stock compensation is also applicable to employees of controlling companies acquiring said compensation from subsidiaries
(4) For venture capital established under Limited Partnership Act whose total capital reaches NT$ 300 million in the current year, the aggregate capital to be attributed to each year within the territory of the R.O.C may be determined by the central competent authority on a yearly basis.
(5) The undistributed retained earnings that a company or a limited partnership use to invest within certain period may be deducted from the undistributed retained earnings for the tax purpose.
(6) The tax incentives provided in the Statute is extended for 10 years until 31 December 2029.
Reported by: Mike Lu / Cindy Chien
Company Act
5. To Simply the Application Form for Foreign Company's Registration Application
On 15 March 2019, the Ministry of Economic Affairs (MOEA) issued a press release that where a foreign company applies to register to establish branch or office, it may supplement a photocopy of the landlord consent letter and title certificate with the competent authority within 30 days after approval date for registration.
Reported by: Mike Lu / Will Chen
Employment Service Act
6. Ruling of the Ministry of Labor
On 21 March 2019, the Ministry of Labor issued a ruling interpreting that "the scope of wage shall be disclosed or informed" stated in Subparagraph 6, Paragraph 2, Article 5 of the Employment Service means that when recruiting employees, the employer shall inform the applicant in advance of minimum regular wage of the vacancy, which shall be disclosed by way of the range, specific amount or minimum amount.
Reported by: David Tsai / Naiju Kuan
Act Governing Food Safety and Sanitation
7. Amendments to Act Governing Food Safety and Sanitation
The Legislative Yuan passed the amendment to Article 4 and Articles 3, 18-1, 47 and 57 of the Act Governing Food Safety and Sanitation on 19 and 22 March 2019, respectively. The President has not announced its effective date. We summarize the key points below:
(1) As competent authority forms food risk assessment advisory committee or food safety management measures advisory system, the ratio of their commissioners in one gender shall be at least one-third to enforce the spirit of international conventions to eliminate all forms of discrimination against women. (amend Article 4)
(2) The definition of "food processing aids" is newly added, which refers to the substance used in the manufacturing and processing procedures of food, to further differentiate the food additives and food processing aids. Such substance has no function in the final food products and shall be removed before the final food products are packed. The remains of food processing aids shall be inevitable and not be intended. (amend Article 3 to add newly Subparagraph 12)
(3) It is newly added that the usage of food processing aids in the manufacturing of food or food materials by food enterprises shall comply with the safety/sanitation/quality standards promulgated by central competent authority, which enhances the food processing aids sanitation standards prescribed by the Ministry of Health and Welfare from current secondary regulations to laws level. Meanwhile, the usage of food processing aids shall not have the potential to harm health of human body. (newly add Article 18-1)
(4) The punishment against Article 18-1 is newly added. Anyone violating the standards under Article 18-1 and failing to correct within designated period would be fined from NT$30,000 to NT$3 million. If the violation is serious, business of violators would be suspended or stopped or relevant company/business/food enterprises registration thereof would be abolished. (amend Article 47 to newly add Subparagraph 7)
(5) The Subparagraph 13 of Paragraph 1 is amended to Subparagraph 14 thereof to respond the amendment to Article 47. (amend Article 51)
Reported by: Kang-Shen Liu / Chen-Chi Wang
2019-04-09
