1. Draft Amendment to Criminal Code
On 12 June 2019, the Executive Yuan announced the draft amendment to the Criminal Code. We summarize the key points below:
(1) Amendment to Article 251: In addition to food, agricultural products or other industrial or agricultural necessities, one who stocks up the living necessities designated by the Executive Yuan with the intention to inflate the price and refrains such objects from selling to the market without justifiable reasons shall be sentenced to imprisonment for no more than 3 years. Besides, the punishment for one who spreads false information through broadcasting television, electronic communication, internet or other media with the intention to affect the price of objects mentioned above shall be increased.
(2) Amendment to Article 313: The punishment for one who spreads rumors through broadcasting television, electronic communication, internet or other media to injures another person's credit shall be increased.
Reported by: David Tsai/ Paul Hsu
2. Draft Amendment to Code of Criminal Procedure
On 13 June 2019, the Executive Yuan announced the draft amendment to the Code of Criminal Procedure. We summarize the key points below:
(1) In a filing for a motion for retrial, an attorney- at-law may be appointed
(2) The court shall inform the person filing a motion for retrial and his/her attorney-at-law to attend the hearing, unless such attendance is obviously unnecessary.
(3) In the filing for a motion for retrial, on application for investigation of evidence can be made concurrently. The court may investigate the evidence at its discretion to find out whether there is any ground for the motion for retrial.
(4) In the case where the filing for a motion for retrial is not in compliance with the procedures, the court shall order to make connection first.
Reported by: David Tsai/ Paul Hsu
3. Draft Amendment to Regulations Governing the Organization and Administration of Sinking Fund Established by Electronic Payment Institutions
In order to regulate dissolution of the sinking fund management committee (committee) for electronic payment institutions, the Financial Supervisory Commission (FSC) announced a draft amendment to the Regulations Governing the Organization and Administration of Sinking Fund Established by Electronic Payment Institutions on 10 June 2019 for public consultation. The amendment provides that the committee shall obtain an approval of the competent authority before dissolution, and shall upon dissolution return its residual assets to electronic payment institutions based on the allocated amount of such institutions on a pro-rata basis.
Reported by: Stacy Lo/ Cindy Chien
4. Unmanned Vehicles Technology Innovative Experimentation Act Enforced on 1 June 2019
On 30 May 2019, the Executive Yuan announced that the Unmanned Vehicles Technology Innovative Experimentation Act shall be enforced on 1 June 2019. Please refer to Lexgroup Newsletter (Issue No. 310) issued on 26 December 2018 for details.
Reported by: Kang-Shen Liu/ Aaron Lai
5. MOEA ruling in relation to Company Act
On 5 June 2019, the Ministry of Economic Affairs (MOEA) issued a ruling to clarifying that where a shareholder of a public company holds shares on behalf of any third parties, the shareholder may exercise its/his/her voting right to vote in a shareholders' meeting for election of director (or supervisor) separately. Where the voting right is exercised to vote for different candidates, the number of candidates that the shareholders vote for is permitted to exceed the number of director (or supervisor) to be elected.
Reported by: Mike Lu/ Will Chen
Securities and Exchange Act
6. Amendment to Securities and Exchange Act
On 31 May 2019, the Legislative Yuan passed the third reading of the amendment to the Articles 14-5 and 36 of Securities and Exchange Act, which specify that the financial reports shall be signed by or the chairman, manager and accounting officer.
Reported by: Jeffrey Liu/ Cindy Chien
Securities Investment Consulting Enterprises
7. Securities Investment Consulting Enterprise (SICE) 2% Business Tax Applied on Core Business
On 11 June 2019, the Ministry of Finance (MOF) issued a ruling to providing that as of and from 1 July 2019, the securities investment consulting enterprise (SICE) applies the business tax rate applicable to securities firms as defined under the Value-added and Non-value-added Business Tax Act (Act), which is 2% for core business, and 5% for non-core business.
Reported by: Jeffrey Liu/ Deborah Lee
Regulations of Inspection of Imported Foods and Related Products
8. Amendment to Regulations of Inspection of Imported Foods and Related Products
On 10 June 2019, the Ministry of Health and Welfare announced the amendment to Articles 7, 19 and 20 of the Regulations of Inspection of Imported Foods and Related Products. We summarize the key points below:
(1) Prohibiting any intentionally repeated applications for inspection of the same product:
In order to prohibit an applicant (vendor) or its agent from evading the inspection, if the product in an application for inspection is randomly selected to be inspected, but the same applicant repeatedly files applications for inspection of the same batch of the products, all applications for inspection of the products of the same batch shall be rejected.
(2) Prior release for the products that are prone to spoiled or denatured can be applied:
For the fresh products that are prone to spoiled or denatured in the batch-by-batch inspection, the applicant may apply with the inspection authority for a prior release with an undertaking, without being retained at a border or a container yard. To apply for a prior release, the guarantee bond in an amount of four times of the DDP (delivered duty paid) price of the products shall be paid.
Reported by: Jolene Wang/ Ethan Lin
9. Amendment to Commodity Tax Act
On 13 June 2019, the President announced the amendment to the Commodity Tax Act. We summarize the key points below:
(1) Newly added Article 11-1:
Within two years from the effective date of this Article, for purchase of new refrigerators, new air conditioners or new dehumidifiers which are identified as the first level or second level in its energy efficiency by the MOEA, without intention to sell, return or exchange such commodities, the commodity tax of each commodity shall be reduced by up to NT$2,000.
(2) Amended Article 12-6:
To prevent pollution from old large diesel vehicles and to improve air quality, from 18 August 2017 to 31 December 2022, a person who scraps buses, trucks, large wagons, large passenger-carrying trucks, large special trucks pursuant to special conditions, purchases the new trucks above and completes its registration, the commodity tax for each new truck shall be reduced by NT$400,000.
Reported by: Stacy Lo/ Bella Chiu
10. Occupational Safety and Health Act
On 15 May 2019, the President announced the amendment to the Occupational Safety and Health Act, which shall be enforced from 15 June 2019. The new legislation requires an employer establish necessary safety and health equipment and measures to respond to damages that may be caused by the wind disaster.
Reported by: David Tsai/ Naiju Kuan