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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

The Taiwan High Court has summoned former president Chen Shui-bian (陳水扁) to appear at a hearing on July 7 for a hearing on whether he is healthy enough to stand trial on several corruption charges that have been suspended on the grounds of his poor health.

The summons was issued after Judge Tseng Te-shui (曾德水) said that Chen, who is on medical parole, might now be well enough to stand trial in several cases, including an indictment for intervening in a string of bank mergers in his “Second Financial Reform” program during 2004 to 2008, his second term in office.