The YunLin Branch of the National Taxation Bureau of the Central Area, Ministry of Finance stated that, if the revenue of the educational, cultural, public welfare, or charity institutions or organizations（hereinafter referred to as institutions or organizations）and that of their subsidiary organizations fails to be declared, institutions or organizations will not be exempted from income tax according to the regulations of Subparagraph 9 of Paragraph 1 of Article 2 of the "Standards Governing Application of Income Tax Exemption to Educational, Cultural, Public Welfare or Charity Institutions or Organizations.  If tax payable is to be levied over NTD10,000 （in the case of using Blue Return or certified by Certified Public Accountant, NTD20,000,) the institutions or organizations will be fined according to Paragraph 1 of Article 110 of the Income Tax Act.

All revenue shall be declared including the sales of goods（such as land, house, stocks）or service and non-sales of goods or service. If undeclared revenues exceed 10% of total revenues and are more than NTD100,000, the exemptions will not be applied. If the declared revenues plus undeclared revenues minus total expenses equal income over NTD120,000 and if the levied taxes are over NTD10,000 （or in the case of using Blue Return or Certified by Certified Public Accountant, NTD20,000), the institutions or organizations will be fined according to the Income Tax Act.

For example, organization A sold a parcel of land at the value of NTD150,000 but didn't declare this in the tax return. After recalculation, if the total revenues reached NTD1,000,000, the undeclared revenues 150,000 divided by the total revenue of 1,000,000 equals 15%（150,000/1,000,000=15%), and since the revenues were more than NTD100,000, the total revenues shall be taxed. In this case, organization A declared a surplus of NTD200,000 plus undeclared revenue of NTD150,000, which equals a surplus of NTD350,000.  The tax payable to be levied is NTD70,000（350,000*rate 20%）with the amount of NTD30,000 subject to penalty（350,000*20%-200,000*20%).

The YunLin Branch of the National Taxation Bureau of the Central Area, Ministry of Finance restated that every revenue of institutions or organizations shall be recorded in an accounting book thoroughly to prevent the under-reporting of revenue or undeclared revenue, levied taxes, and fines in consequence of incomplete accounting records.

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