In any of the following circumstances, the taxpayer shall be subject to a fine of not less than NT$10,000 but not more than NT$50,000, in addition to being notified to comply with the requirements or make corrections; a continuous fine may be imposed if the correction is not made within the specified time limit.
1.Failing to apply for registration as prescribed in Articles 9 or 10.
2.Failing to make statements or making false statements as prescribed in the Tobacco and Alcohol Tax Collection Regulation.
3.Failing to set up and keep account books, evidential documents and relevant records as prescribed in Article 11.

Where the manufacturer fails to file a tax return within the time limit prescribed in Paragraph 1 of Article 12 but has filed the tax return and paid the Tobacco and Alcohol Tax and the Health and Welfare Surcharge owed within the time limit as prescribed in Article 14 upon the notification of the competent tax collection authority, a surcharge of one percent for belated filing shall be added to the total amount of the Tobacco and Alcohol Tax and the Health and Welfare Surcharge owed; the amount of such surcharge shall not exceed NT$100,000 but shall not be less than NT$10,000.
Where the manufacturer still fails to file the return and pay the Tobacco and Alcohol Tax and the Health and Welfare Surcharge owed within the time limit as prescribed in Article 14, a surcharge of two percent for non-filing shall be added to the total amount of the Tobacco and Alcohol Tax and the Health and Welfare Surcharge owed as assessed by the competent tax collection authority upon investigation; the amount of such surcharge shall not exceed NT$200,000 but shall not less than NT$ 20,000.
Where the manufacturer as referred to in the preceding two paragraphs has no Tobacco and Alcohol Tax and Health and Welfare Surcharge owing, the surcharge shall be NT$5,000 for belated filing and NT$10,000 for non-filing.

A taxpayer who fails to pay within the prescribed time limit any amount of Tobacco and Alcohol tax and the Health and Welfare Surcharge on tobacco products shall be subject to a surcharge for belated payment at one percent of amount for every two days in arrears from the next day the tax is due. If the payment is not met thirty days after the time limit, the collection authority in charge may refer the case to the court for compulsory execution. However, a taxpayer who is unable to pay off the tax within the statutory period due to events that are force majeure or causes not attributable to the taxpayer, and has applied for the deferral of the tax payment or for payment by installments within ten days after the cause of the a foresaid events along with concrete evidence and has been approved by the collection authorities, shall be exempted from the surcharge for delinquent payment.
Interest on the aforesaid tax and the Health and Welfare Surcharge due calculated at the interest rate for one-year term deposit quoted by the Postal savings fund shall accrue daily from the next day following the prescribed payment deadline to the date the taxpayer makes payment, or to the date the compulsory collection is executed by the court.

In any of the following circumstances, the taxpayer shall be pursued for payment of taxes and fined from 1 to 3 times the amount of tax evaded:
1.Manufacturing taxable tobacco or alcohol products and removing the goods from the factory without applying for registration as prescribed in Article 9.
2.Manufacturing taxable tobacco or alcohol products and removing the goods from the factory within the time limit, as prescribed in Article 14, during which goods are forbidden to be removed from the factory.
3.Failing to declare imported goods and pay the tobacco and alcohol tax and the Health and Welfare Surcharge at the time of importation.
4.Failing to pay the tobacco and alcohol tax and the Health and Welfare Surcharge while selling or using exempt goods for a purpose not originally intended.
5.The quantities of raw materials or finished products in stock differ from those recorded in the account books.
6.Failing to report or under-reporting the taxable quantity of the goods.
7.Falsely reporting the classification of tobacco or alcohol products.
8.Other evasion of the Tobacco and Alcohol Tax and the Health and Welfare Surcharge.