500 Doctors Evade Taxes, Academician Cai Zuoyong Questioned
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2011/07/21 04:11
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China Times 2011/07/21 Reporter Hsiao Po-Wen / Taipei
Tsai Tso-yung, an esteemed academician of Academia Sinica renowned in the field of neuroscience, is suspected of assisting over 500 physicians in "fake donations, real tax evasion" through the "Siyuan Educational and Academic Advancement Foundation," which he founded, resulting in tax evasion exceeding NT$100 million over five years. The Investigation Bureau launched an investigation yesterday and discovered at the Taipei District Office that the implicated physicians span across Taiwan, with nearly all being alumni of Tsai’s alma mater, the National Defense Medical Center. Tsai is expected to be summoned for questioning today or tomorrow.
Investigators noted that Tsai Tso-yung, the Academia Sinica academician suspected of aiding physicians in tax evasion, graduated from the National Defense Medical Center’s medical program, retired as a lieutenant general, and once served as the institution’s president. Elected as an Academia Sinica academician in 1978, he remains a member of the Life Sciences Division. Known for his upright character and nicknamed "Tsai the Upright," the allegations of his involvement in tax evasion have shocked the medical community.
Another implicated party, Li Hong, the head of the "Chenghan Education Foundation," was also an alumnus of the National Defense Medical Center. Li passed away last year, and his wife, Hsieh Hsiu-mei, has since taken over the foundation’s operations.
Investigators stated that factionalism runs deep in the medical field, with all the implicated physicians predominantly hailing from the National Defense Medical Center. Over a hundred physicians suspected of tax evasion are spread across Taiwan, including department heads and professors.
The investigation revealed that as early as 2005, the National Taxation Bureau uncovered irregularities during audits of consolidated income tax filings. Multiple physicians were found to have made donations to the "Siyuan Educational and Academic Advancement Foundation" and the "Chenghan Education Foundation" under the guise of charitable contributions, thereby lowering their tax rates. However, the foundations later returned 90% of the donated amounts to the physicians under the pretext of research grants.
The National Taxation Bureau’s review found that from 2005 to 2009, approximately 100 physicians evaded taxes through these two foundations, with the number of evasion instances reaching several hundred and the total amount surpassing NT$100 million. Many of the physicians admitted to the evasion during questioning and promptly paid back taxes. Yesterday, two physicians and three foundation staff members were summoned. Reportedly, the two physicians cooperated fully, confessed to tax evasion, and were released after questioning. Investigators also demanded explanations from foundation personnel, with the case to be prosecuted for forgery, fraud, and violations of the Tax Collection Act.
In the evening, the Tri-Service General Hospital issued a statement clarifying that preliminary findings indicated some staff members had donated to the "Siyuan Educational and Academic Advancement Foundation" in 2005 and 2006 due to their alignment with its mission. However, as the National Taxation Bureau did not recognize these donations, the staff involved had already complied with back-tax payments.
The hospital emphasized that since 2007, no physicians from the hospital have donated to the foundation. Regarding the Investigation Bureau’s summons of related personnel, as the case has entered judicial proceedings, the hospital will fully cooperate with prosecutors to swiftly clarify the truth.
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