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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

Academics assessing the nation’s democratic performance during the first half of President Ma Ying-jeou’s (馬英九) term yesterday urged the public “to provoke disputes” to revive the system of checks and balances that they said has been noticeably weakened under Chinese Nationalist Party’s (KMT) rule.

“The nation’s democracy has been in peril these past two years and I have been wondering on ways to resolve it, and my conclusion is that intellectuals must use [their] knowledge to provoke [public] disputes,” said Liu Chin-hsing (劉進興), professor of chemistry at National Taiwan University of Science and Technology.