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.

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.

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.

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.

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.

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.

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.