When a taxpayer fails to declare tax by the applicable deadline specified in Article 16, paragraph 1 or paragraphs 3 to 5, or when, without due cause, the declared selling price is lower than the prevailing market price, the competent tax authority may assess a selling price and a tax amount, based on the prevailing market price or data obtained through investigation, and collect the tax.
If any of the following circumstances occurs when a business entity sells the specifically selected goods or specifically selected services of Article 2, paragraph 1, subparagraph 1, the competent tax authority may assess a selling price and a tax amount, based on data obtained through investigation, and collect the tax:
1. Accounting books have not been established, or an entry has not been made in the accounting books within the prescribed deadline, and following notification to make the entry, has still not been made, or accounting vouchers have been lost, or an audit by the competent tax authority is refused, or false entries have been made in the accounting books.
2. When business operations have commenced without due registration pursuant to the Value-Added and Non-Value-Added Business Tax Act, or business operations have continued after application for cessation of business, and a selling price is not reported in accordance with regulations.
When a manufacturer fails to declare tax within the deadline prescribed by Article 16, paragraph 2, the competent tax authority shall issue a notification to the manufacturer requesting it to make payment and declare the tax within three days. If the manufacturer fails to do so within that deadline, the competent tax authority may assess a selling price and a tax amount, based on data obtained through investigation, and collect the tax.
When, without due cause, the declared selling price of the manufacturer under the preceding paragraph is lower than the prevailing market price, the competent tax authority may assess a selling price and a tax amount, based on the market price or data obtained through investigation, and collect the tax.