The dedicated unit reports to the Board of Directors on tax compliance and news on domestic
and international tax laws every half year. This enables the Board to not only effectively
supervise the implementation status but also understand internal risks and tax trends. Under
the effective functioning of the risk management mechanisms, E.SUN controls the frequency
and amount of tax disputes to a low risk level.
||In 2020, E.SUN declares value-added tax via
the internet for the first
time. Technology is used to improve the operational efficiency of
tax compliance. This year, various countries launched tax-related
measures to relieve the impact of COVID-19. The domestic and
overseas subsidiaries and branches decided to claim tax relief after
conducting general evaluation.
||Professional knowledge on taxes is passed
down through the
establishment of operation manuals, work drafts, experience sharing
and the establishment of the agent system.
||Tax personnel's performance is highly
related to the annual tax
work plan. Performance is evaluated via the achievement of goals.
It is prohibited to adopt radical tax avoidance measures to obtain
||With the checking of the
three lines of
defense and the monitoring
of the key risk indicators, in 2020, three low-risk anomalies were
discovered. E.SUN immediately evaluated the amount affected and
formulated action plan for improvement as well as fortified the control
points to reduce the likelihood of the occurrence of risk incidents to
ensure that tax operations complied with relevant laws and internal
||Using the identification of risks and the
three lines of defense
mechanism, high-risk tax incidents will be reported to the highest
governance unit, the Board of Directors.
on tax incidents
||Internal and external whistleblowing
hotlines and mail boxes are
established for reporting illegal or unethical tax-related matters.
Tax disclosure reliability
||Tax information disclosed in public
channels such as the official
website and annual reports is audited by a certified public
Global average effective tax rate for the banking industry is 25.82% according to CSA Companion
2021 published by S&P Global. Since the statutory tax rates in Hong Kong (16.5%) and
Taiwan (20%) where 90.41% of the revenue was generated are lower than other tax jurisdictions,
and that OBU and securities income are exempt from taxes according to the tax laws of
Taiwan, the effective tax rate is lower than the global average.