CLA to investigate
pocketed tax refunds

By Resham Bhojwani

Taiwan - Sunday Oct 15, 2000 - At Thursday?s closed door meeting between the Council of the Labor Affairs (CLA) and the Catholic Non Government Organization (NGO), the issue of monthly taxes, often deducted from the worker?s pay and withheld by the employer, received a welcomed development from the CLA, as they are now willing to take action against reported cases.

 As per set instructions from the brokers, employers generally deduct a flat rate of 20 percent from a worker?s monthly salary for a half year period, regardless of which month the worker entered the country.

 Following this period, some brokers instruct employers to withhold 6 percent. However, reported cases have confirmed that brokers withheld 20 percent of the workers monthly salary for the entire duration of the contract.

 In other words, tax refunds are often pocketed by employers and brokers.

 "There have been a number of cases wherein employers and brokers do not return the tax that they withhold from the workers," the Catholic NGO group told CLA?s Chairman Chen Chu.

 In fact, this problem persists even up to the last minute when workers are ready to board their flights.

 "Just last Monday, I got another case concerning taxation. One of the workers was supposed to go back to Manila and called up from the CKS Airport (boarding area) telling us that her employer did not give back the excess amount she withheld from her salary amounting to NT$35,000 more or less," said Diosdado Lopega, a social worker from the migrant worker?s concern desk.

 "I asked her whether she wants to go back without her money or to cancel her flight so that I can contact her employer and find out why she failed to give her back the money. Finally, she decided not to board the plane," he added.

 The case was discussed, argued over and finally concluded with Benita receiving her share of the money.

 Other issues were also discussed with the CLA with regards to foreign worker?s replacement fees.

 Initially, a worker is required to pay one month?s salary in addition to NT$5,000 to the Filipino and Taiwan agent. However, the amount is not shared between the two parties and is thus swindled by the Filipino agent, who then makes the worker, upon boarding their flight, sign a blank sheet of paper which is translated into a worker owing the Taiwan agent a lump sum of money.

 "To their surprise, the worker land in Taiwan and realizes they are in debt for an alleged NT$50,000 and must repay the Taiwan agent the lump sum specified in their working contract," said Lopega.

 The meeting concluded with the promise that joint efforts would be carried out by the NGO and CLA to help reduce the number of cases while stamping out discrepancies within each case.
 
 


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