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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

A new study on the rising number of retired senior Taiwanese military officers who visit China concludes that retired officials of “mainland” heritage represent the constituency in Taiwan most likely to support unification and could serve as willing conduits for Chinese propaganda intended to manipulate public perceptions in Taiwan.

“Retired Taiwanese military officers have visited China in an individual capacity for many years,” writes John Dotson, a research coordinator on the staff of the congressionally mandated US-China Economic and Security Review Commission in the latest issue of the Jamestown Foundation’s China Brief.