Taipei, April 15 (CNA) The Cabinet on Thursday approved a draft amendment to the Tax Collection Act, which would allow a maximum fine of NT$100 million (US$3.53 million) for major tax evasion.

The draft amendment raises the maximum fine for evading tax payment by means of fraud or other illegal practices, from NT$60,000 to NT$5 million, and imposes more stringent punishments for other types of tax evasion, according to Taxation Administration Director-General Hsu Tzu-mei (許慈美).

In major cases, the fine will range from NT$10 million to NT$100 million and a jail term of one to seven years, Hsu said, adding that those penalties will apply to individuals who skip at least NT$10 million in taxes and businesses that avoid at least NT$50 million.

The draft bill, however, eases the surcharge for delinquent tax payments, lowering the maximum rate from 15 percent to 10 percent, as it slows the rate of increase over a 30-day period, she said. It also allows for financial rewards to be given to people who provide information that helps taxation authorities root out tax fraud and evasion, Hsu said.