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Title: The Act Governing the Settlement of Ill-gotten Properties by Political Parties and Their Affiliate Organizations CH
Announced Date: 2016-08-10
Category: Ill-gotten Party Assets Settlement Committee(不當黨產處理委員會)
Chapter 1 General principles
Article 1
The objective of this Act is to investigate and settle ill-gotten assets acquired by the political parties, their affiliated organizations and trustees, to create a fair environment for competition among political parties, to enhance democracy, and, thereby, to implement transitional justice.
Article 2
The Executive Yuan shall establish the Ill-Gotten Party Assets Settlement Committee (hereinafter referred to as the CIPAS) as Competent Authority of this Act; the Basic Code Governing Central Administrative Agencies Organizations shall not be applicable to the CIPAS.
The CIPAS shall, within the power conferred by law, conduct the investigation, restitution, forfeiture of restoration of rights of ill-gotten assets acquired by the political parties, their affiliated organizations and trustees, restoration of rights, and other matters mandated by this Act.
Article 3
Unless otherwise prescribed in this Act, the statute of limitations on ill-gotten assets acquired by the political parties, affiliated organizations, and trustees shall be governed solely by this Act.
Article 4
For the purposes of this Act the following definitions apply:
(1) ‘Political parties’ means parties formed before July 15, 1987 and had been recorded in accordance with the Act Dealing with Civil Associations during Period of National Mobilization in Suppression of Communist Rebellion.
(2) ‘Affiliated organizations’ means a legally separated juristic person, group, or institution whose personnel, finance, or operation is substantially controlled by the political parties.
A juristic person, group, or institution is also an affiliated organization if it was once substantially controlled by the political parties in terms of personnel, finance, or operation and has acquired its separated status and assets from the political parties without paying fair price.
(3) ‘Trustee’ means a third person who manages assets entrusted or assigned by the political parties or its affiliated organization.
(4) ‘Ill-gotten party assets’ means assets the political parties has either acquired for themselves or allowed their affiliated organizations to acquire through conducts which are against the nature of political parties and the principles of democracy and the rule of law.
Article 5
Since the promulgation date of this Act, the extant assets obtained from August 15, 1945 by political parties and their affiliated organizations or the extant assets have been delivered, transferred, or registered to trustee by the political parties and their affiliated organizations from August 15, 1945, aside from membership fees, political contributions, donation of campaign funds, government election expenses subsidies and its interests, shall be presumed to be ill-gotten assets.
Since the promulgation date of this Act, the existing assets obtained gratuitously or with apparently unfair price from August 15, 1945 by the political parties and its affiliated organizations, aside from membership fees, political contributions, donation of campaign funds, government election expenses subsidies and its interests, thenceforth not belonging to the political parties, their affiliated organizations or trustees shall also be presumed to be ill-gotten assets.
Article 6
The CIPAS shall order the political parties, affiliated organizations, trustees, or any third party who unjustifiably received gratuitously or by paying an apparently unfair price to get such assets from the political party, affiliated organizations, or trustee, to transfer such assets to the State, local self-governing bodies, or original owners within the prescribed period of time.
The Scope of assets transferable as prescribed in the preceding paragraph shall be limited to the extant benefits. However, for those assets acquired with unequivalent quid pro quo, the quid pro quo shall be deducted.
If assets as prescribed in the preceding paragraph1 have been transferred to the third party and therefore cannot be recovered, the monetary value of the assets shall be confiscated from the political parties, affiliated organizations, trustee, or any third party who obtained or was transferred as gratis or with unequivalent quid pro quo without a justifiable reason.
Article 7
The transfer of the assets to the State, local self-governing bodies, or original owners as prescribed in the preceding article shall have no effect on the existing rights in lease, superficies, mortgage or dian held by bona fide third party.
Chapter 2 Declaration, investigation, and settlement
Article 8
The political parties, affiliated organizations and trustee shall, within one year from the date that this Act becomes effective, declare to the CIPAS the followings assets:
1. The extant assets acquired by the political parties or affiliated organizations and the extant assets that have been delivered to, transferred to, or registered under, the trustee by the political parties or affiliated organizations, between August 15, 1945 and the date of promulgation of this Act.
2. The extant assets acquired by the political parties, affiliate organizations, trustee as prescribed in the preceding paragraph and not belonging to the political parties, affiliate organizations or trustee.
Assets as prescribed in the preceding paragraph to be declared are as follows:
1 Real property, vessels, cars and aircrafts;
2 Deposits, securities, foreign currencies, and other valuable property exceeding a prescribed value;
3 Creditors’ rights, debts and investments to various ventures exceeding the prescribed value.
The abovementioned certain values and other valuable properties as prescribed in the preceding paragraph shall be publicly announced by the CIPAS.
Abovementioned declarations as prescribed in the preceding paragraph1and 2 shall state sources, categories, the method of obtaining, the date of obtaining, change and quid pro quo of assets, and if there is a written contract, shall submit specific contract and related information; the formats shall be prescribed by the CIPAS.
The CIPAS may investigate and determine an organization as political parties’ affiliated organizations and trustee, and notify them to declare assets as prescribed in the preceding paragraph 1 within 4 months upon receiving the notice from the CIPAS.
Apart from receiving the declaration as prescribed in the preceding paragraph and paragraph 1, the CIPAS may also initiate investigation in relation to the sources, methods of acquisition, date of acquisition, change of and consideration for acquisitions of assets acquired by the political parties, affiliated organizations or its trustee.
Article 9
The presumed ill-gotten party assets as prescribed in the preceding paragraph 1 of Article 5 are prohibited from being transferred or disposed since from the date of promulgation of this Act. However, this limit is not applicable to any of the following circumstances:
1. When it is necessary to perform its legal duties or other justifiable reasons;
2. In conformity with the approval requirement and approved by the CIPAS.
For the situation as prescribed in the preceding paragraph subparagraph 1 after being transferred or disposed, shall make a list and submit to the CIPAS within 3 months.
Other justifiable reasons and approval requirement as prescribed in the preceding paragraph 1 shall be as separately prescribed by the CIPAS.
Assets prohibited from being transferred or disposed as prescribed in the preceding paragraph 1 if such registered according to law, the CIPAS may request the competent authority to process registration of restriction; if such deposits and securities are deposited or received by financial institutions, the CIPAS may request the financial institutions freeze related accounts; if such rightful claims of creditor, the CIPAS may notify debtor process lodgment for payment of debt to public lodgment office of place of performance court and submit the facts of lodgment to the CIPAS. Unless otherwise agreed by the CIPAS, the lodged property recipient shall not receive. The processing lodgment performance in accordance with this paragraph is effective.
Political parties, affiliate organizations or its trustee violating the provisions as prescribed in the preceding paragraph 1 to transfer or dispose are invalid.
If any dispute arises concerning scope of discretion as prescribed in the preceding paragraph 1 subparagraph 1 or objection may be made against the resolution as prescribed in the preceding paragraph 1 subparagraph 2, interested person may apply petition for review within 30 days from the date of receipt of the notice, for those not satisfied with the review decision, may file an administrative suit within 2 months peremptory period.
Article 10
Assets declared under article 8 shall be presumed to be ill-gotten and disposed of pursuant to article 6 if the CIPAS considers the declaration to constitute intentional or grossly negligent concealment or omission, or untruthful statements in relation to important matters.
Article 11
The CIPAS shall conduct investigation in a manner conforming to the due process of law and the principle of proportionality.
For the purpose of conducting investigation, the CIPAS may take the following actions:
1. To request the files and materials from relevant authorities (institutions), including requesting property, income, business and tax payment materials from the taxing authorities; Article 33 of the Tax Levy Act shall not be applicable.
2. To request legal entities, groups or individuals to submit accounting books, documents. and any other necessary materials or exhibits;
3. To dispatch personnel to offices, places of business, or other locations of the - relevant authorities (institutions) or business and individual residence locations for any necessary onsite inspection
4. To give any relevant person a written notification, requiring him to give his opinions. The notification shall give such details in relation to the purpose of the inquiry, the time and place where the person notified is required to appear, whether or not he is allowed to appoint another person to appear on his behalf, and the consequence for failure to appear;
5. Other necessary means of investigation.
The investigation means as prescribed in the preceding paragraph finding the sources, the method of obtaining of concerned assets obtained by political parties, affiliate organizations or its trustee may copies and hold backups, temporarily impound the related materials or exhibits or take away the whole or a part of them if necessary. However, the scope, and duration of impounding, taking away or holding are limited to the need of inspection, verification, or any other purpose of preserving evidence.
Impounding, taking away or holding materials or exhibits possessed by central or local agency (organization) shall get the permission of the chief of the agency (organization). Unless such action will impair the national interests, the chief of the agency (organization) shall not refuse.
The chief of agency (organization) shall affix his or her seal on the materials or exhibits to be taken away by the person conducting investigation and the person conducting investigation shall give a receipt in return.
Where the person conducting the investigation fails to present documents supporting the fact that he is dispatched by the CIPAS, the person under investigation may refuse the investigation
In conducting investigation as prescribed by this article, the CIPAS may request necessary assistance from the government agencies or the police and may consign certified public accounts and other professionals for assisting in inspecting, appraising and auditing materials concerned.
Article 12
The investigated authorities (institutions), legal entity, group or individual person shall not avoid, obstruct or refuse such investigation.
Article 13
The CIPAS may grant reward to anyone who provides information in relation to the location, sources, or manners of acquisition or disposition of the ill-gotten assets if such information leads to the discovery and recovery of the ill-gotten assets by the CIPAS.
The CIPAS shall keep the identity of the person reporting or informing confidential.
The terms, formalities, and other relevant matters in relation to the grant of reward as prescribed in the preceding paragraph 1 shall be prescribed by the CIPAS.
Article 14
The CIPAS’s disposition under article 6 or determination concerning the status of political parties‘ affiliated organizations and trustee under article 8 paragraph 5 shall not be made without public hearings.
Article 15
The CIPAS shall determine the result of the investigation and make written disposition concerning that determination. The written disposition shall specify the following information:
1. The name, title and address of the party subject to disposition;
2. The current status of assets and rights subject to inspection;
3. Subject matter, facts, reasons of the disposition;
4. Contents of the incidental provisions, if any;
5. The title of the CIPAS;
6. Reference number and date of the document;
7. The statement to the effect that it is an administrative disposition and the means of remedy available in case of dissatisfaction with the disposition, the time period within which remedy may be sought and the authority with which application for remedy must be filed.
The subject matter of assets settlement as prescribed in the preceding paragraph subparagraph 3 shall state categories, quantities, a levy on payments, a mentioned time period and transfer object in accordance with Article 6.
The written disposition as prescribed in paragraph 1 shall be publicized by publication in Executive Yuan gazette and website.
Article 16
The person dissatisfied with the CIPAS’s disposition which is made after public hearings, may file an administrative litigation within a peremptory period of two months after the written disposition was served.
Article 17
In order to conduct investigation-related matters as prescribed by this Act, the Competent Authority may prescribe procedural rules.
Chapter 3 Organization
Article 18
The CIPAS shall consist of 11 to 13 Board members to be appointed by nomination by the premier for a four-year term. When making the appointment, the premier shall designate one of the board members as the Chairperson and another as the Vice Chairperson.
When the Chairperson, Vice Chairperson or board members is vacant, the premier shall act in accordance with the procedure set forth in Paragraph 1 and nominate new board member. The succeeding board member shall serve until the term of the original Board member expires.
The number of board members affiliated with the same political parties may not exceed one third of the total number of Board members. The number of Board members affiliated with the same gender may not exceed one third of the total number of Board members.
The Chairperson, a special appointee, shall represent the CIPAS in external functions.
Article 19
The CIPAS shall have a chief secretary. The chief secretary serves under the order of the chairperson, managing general affairs of the CIPAS while directing and supervising its staff. The CIPAS shall have several staffs for operation. Other related authorities shall assign a person to take charge of the coordination and communication.
To achieve the purpose of this Act, the chairperson and the board member appointed by Chairperson may take emergent measures which are not exceeding necessary scope of duties of CIPAS once encountered imminent and immediate event.
The organizational structures and regulations of the CIPAS shall be prescribed by the Executive Yuan.
Article 20
Board members of the CIPAS should be above partisanship and exercise their own duty independently according to the law. No participation of political parties’ activities is allowed during their service period.
Board members who has violated the provision set out in the preceding Paragraph shall be terminated their position by the premier after approving by the Commission’s Committee Meeting.
Article 21
Board members fits any of the following circumstances, shall be terminated their position by the premier:
1. death or incapable of performing duties due to illness;
2. Resignation;
3. being subject to a valid order of the commencement of guardianship or assistantship;
4. Committing illegal acts, reckless disregard of duties, or other misconducts;
5. Being detained or indicted for a crime.
Article 22
The Commission’s Committee Meeting shall be convened monthly and presided over by the Chairperson. Additional meeting may be held if necessary and presided over by the Chairperson. In case that the Chairperson cannot attend the meeting, the Deputy Chairperson shall act on the Chairperson’s behalf. In case that both the Chairperson and the Deputy Chairperson are not available for the meeting, a Board member shall be elected by and from the Board members attending the meeting to act as the chairperson.
The Commission’s Committee Meeting may be held upon the attendance of a majority of all board members; decisions must be approved by a majority of board members in attendance other than the following circumstances:
1. The Commission’s Committee Meeting shall have more than two-thirds of all board members to attend, and decisions approved according to article 6 shall require the consents of more than half of the Board members presented at the meeting.
2. The Commission’s Committee Meeting shall have more than two-thirds of all Board members to attend, and decisions approved according to Paragraph 2 of Article 20 shall require the consents of more than two-thirds of the Board members presented at the meeting.
Article 23
The CIPAS shall report current execution and information on the progress of the investigation of ill-gotten party assets on the CIPAS's web sites immediately. The CIPAS shall file a report to the Legislative Yuan semiannually.
Article 24
The CIPAS shall regularly announce the list of the ill-gotten party assets retrieved or the monetary value expropriated under this Act. The list shall also be published on the CIPAS's web sites.
The list set out in the preceding Paragraph shall include the title, content, acquisition method, current use condition, and their monetary value.
Article 25
If it is established that the ill-gotten party assets replevied or the monetary value expropriated under this Act were previously taken from nationals of our country or juristic persons and organizations of our country by the political parties or its affiliated organizations, the original right-holder or his successor in title shall have the right to restore their right by making an application to the CIPAS.
The restoration of right as prescribed in preceding paragraph shall be implemented by way of replevin of origin assets. However, if it is decided that replevin has become impossible, expropriation of equivalent monetary value shall be exploited as the alternative measure of implementation. But the monetary value thus expropriated shall not exceed the actual value of assets replevied or monetary value expropriated pursuant to this Act.
The regulations of the procedure of restoring right and other related matter stated in Paragraph 1 of this article shall be prescribed by the CIPAS.
Chapter 4 Penal provisions
Article 26
The party, its affiliated organizations, or trustee that violate Paragraph 1 or Paragraph 5 of Article 8 shall be fined an amount from NT$1,000,000 up to NT$3,000,000. Violators that did not declare according to the time period each ten days may be fined continuously and independently for each violation.
Article 6 shall be complied with after the assets are presumed to be ill-gotten assets when being disposed of the penalty as prescribed in the preceding paragraph five times.
Article 27
The party, its affiliated organizations, or trustee that violate Paragraph 1 of Article 9 shall be fined from 1 to 3 times the amount of the price of the assets.
The party, its affiliated organizations, or trustee that violate Paragraph 2 of Article 9 shall be fined an amount from NT$100,000 up to NT$500,000 and be ordered to declare within a prescribed period of time. In case the declaration is not conducted within the time limit, consecutive punishment may be imposed.
Article 28
The Institution, juristic person, organization, or individual that is under investigation violates Article 12 shall be fined an amount from NT$100,000 up to NT$500,000.
Article 29
Anyone, who is dissatisfied with fines imposed by the CIPAS may seek administrative remedy in accordance with applicable laws.
Chapter 5 Supplementary provisions
Article 30
Where the compulsory execution on obligatory payment under public law fined under this Act is not paid within the prescribed period of time after a notice to pay has been served, the CIPAS or management office shall transfer the case to the court for compulsory enforcement.
Where delivery of assets to management office under this Act is not performed within the time limit, the management office shall enforce the case compulsorily under law.
Article 31
Registration of real property shall be carried out by the registration office at the request of the CIPAS or the management office after the deposition document prescribed in Article 15 being delivered and effective. Under the "Owners" column a note shall be inserted to indicate whether the real property is owned by the State, the local self-governing bodies, or the original owner without original certificate of landownership or of any other right over land.
Registration of securities, vessels, and aircrafts shall mutatis Mutandis, apply to the preceding Paragraph.
The enforcement and transfer of assets according to preceding Article and preceding two Paragraphs shall be exempt from paying the enforcement fee, tax payment, administrative fee.
Article 32
The fines imposed in accordance with this Act, shall be paid within the prescribed period of time. The competent authority will directly deduct and discharge such fines from the subsidies for political parties apportioned under Paragraph 6 of Article 43 of the Public Officials Election And Recall Act while failing to pay the fines within the prescribed time period.
Article 33
The enforcement rules of this Act shall be made and promulgated by the Executive Yuan
Article 34
This Act shall enter into force from the date of promulgation.
Web site:Laws & Regulations Database of The Republic of China