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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 nation’s defense capability is to see a boost over the next four years, as the military is expected to acquire major equipment such as M1A2T tanks, light cruisers and F-16V jets, but production delays are likely to continue posing challenges.

With some analysts saying that Beijing is eyeing an invasion deadline of 2027, Taiwan’s military readiness over the coming years is of critical importance.

Based on the Ministry of National Defense’s published budgets, the military from now until 2027 is scheduled to receive a significant amount of new armaments.