If a dual-status business entity fails to follow Item 6 of Article 8-2 at the time of adjustment and filing of the last business tax return for the year, the competent authority may suspend the application of the direct deduction method by the said business entity. In such case, the said business entity shall compute its business tax according to the provisions in Articles 1~7 herein and may not change the computation method within the following three years.
If the use of the direct deduction method for the computation of business tax by a dual-status business entity has been suspended during a year, the tax period in the year immediately prior to the initiation of the ratio deduction method shall be treated as the last filing period of the year in which the tax adjustment shall be made according to Sub-Items 1 and 2 of Item 4 of Article 8-2 herein.