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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

Opposition parties yesterday vowed to begin a “10-year resistance” against the government’s plan to sign an economic cooperation framework agreement (ECFA) with China, including organizing large-scale protests calling for a referendum on the controversial pact.

The Executive Yuan’s Referendum Review Committee on Thursday night voted 12-4 against an opposition-supported referendum proposal asking voters whether they agreed that the government should sign an ECFA with China. The committee said the question did not fall under what was allowed under the Referendum Act (公民投票法).