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MOF says politics did not stop tax deal

The Ministry of Finance yesterday said the breakdown of cross-strait negotiations on a tax pact on Monday was mainly the result of a dispute over levying income tax on China-based Taiwanese businesspeople according to where they reside or where they get paid.

The ministry said the breakdown was not related to sovereignty, apparently contradicting comments a day earlier by Premier Wu Den-yih (吳敦義), who said the deal was delayed because the treaty would have treated Taiwan the same as Hong Kong.

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Think tank urges US to strengthen Taiwan relations

A Washington think tank is advising US President Barack Obama to foster closer diplomatic, defense and economic relations with Taiwan to offset China’s “potentially coercive” embrace.

In an eight-page policy brief, the Center for a New American Security (CNAS) concludes that US cross-strait policy remains based on a “tangled and complex web of decades-old doctrine, law and joint statements.”

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Newsflash

President Ma Ying-jeou’s (馬英九) proposal for a possible peace accord with China within a 10-year time frame could put Taiwan’s sovereignty and democratic values at risk and leave future generations with no freedom of choice, Democratic Progressive Party (DPP) Chairperson Tsai Ing-wen (蔡英文) said yesterday.

Speaking as the head of her party, Tsai, the DPP’s presidential candidate in January’s election, told a press conference that Ma’s proposal was “irresponsible and impetuous” and that it amounted to the manipulation of a highly sensitive political issue to cover up his administration’s failures, as well as a bargaining chip that benefits his presidential campaign.