In the case of a profit-seeking enterprise or an individual that has calculated and filed the basic income in accordance with the provisions of this Act, any omission or under-reporting of the basic tax shall be subject to a fine of no more than twice the amount of the tax evaded.
In the case of a profit-seeking enterprise or an individual that fails to calculate and file the basic income in accordance with the provisions of this Act, and that is found by the tax authority to have taxable income hereunder, it/he/she shall, in addition to paying the amount of income tax assessed and determined by tax authority in accordance with this Act, be subject to a fine of no more than three times the amount of tax determined as payable.

In case any profit-seeking enterprise or individual is found to have improperly evaded or reduced the tax burden for him or herself or for other person(s) by means of transfer of funds or shareholder's equity, or any other fictitious arrangement with any other domestic or foreign individual, profit-seeking enterprise, educational, cultural, public welfare and charitable organization or institution, the tax authority for the purpose of accurately computing the amounts of basic income and basic income tax of the relevant taxpayers may, after investigation and with the approval of the MOF, make necessary adjustment according to the facts of actual transactions of investigation in accordance with the relevant laws.