Under the bill, organizations are required to submit their annual budgets to government supervisory agencies prior to Jan. 31 each year, and to submit first-half financial reports prior to May 31.

In addition, non-profits are also required to submit other financial information such as subsidies or donations received from other entities. However, information that may invade individuals’ privacy or that may cause serious disruptions to the organization’s operations will not be included.

Organizations that do not abide by these regulations may receive fines of between NT$30,000 and NT$150,000.

The bill, if passed by the Legislature, is expected to more effectively block efforts by politicians or businesspeople from setting up non-profit organizations, such as foundations or charities, for tax evasion or money laundering purposes.

Many Taiwan politicians have foundations affiliated to them. These include the Formosa Foundation affiliated to President Chen Shui-bian, Lien Chen-tung Cultural and Education Foundation affiliated to Lien Chan, the New Taiwan People Foundation affiliated to former Taipei mayor Ma Ying-jeou, and the New Culture Foundation affiliated to former Kaohsiung mayor Frank Hsieh.

The bill also prohibits directors or supervisors of an organization from conducting any business activities with the organization. Those responsible for causing any harm to the organization as a result of these activities will be penalized. If an organization seeks to donate or give monetary awards to certain entities or individuals, the sum may not exceed 10 percent of the organization’s annual spending, according to the bill.

Also, assets kept by an organization should be registered as institutional investors’ holdings and should be monitored by government supervisory agencies. The assets may be used for the following purposes: bank deposits, purchase of bonds, purchase of real estates required for organization operations, investments in safe, secure products with the sole purpose of increasing the organization’s holdings, and other uses as approved by government supervisory agencies.

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