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This article provides a quick summary of key points.
- The company manager must first organize the ledgers and vouchers:Commercial accounting law cases often involve accounting vouchers, ledgers, financial statements, invoices, and the company's internal division of labor, so one cannot look at just a single document.
- Avoid rushing into explanations when being investigated:When you receive a summons, search warrant, or questioning, you should first clarify your identity and the transaction process that the prosecutor suspects.
- Business accounting law often overlaps with other crimes:Inaccurate financial statements, forgery, breach of trust, fraud, or banking law risks may all be included in the investigation by the prosecution.
- Corporate cases require lawyers who understand both accounting and business:Lawyers who are familiar with financial statements, board meetings, shareholder meetings, and transaction procedures are better able to grasp the key points of their defense.
"Prosecuted for making a single mistake in an accounting document?" "Could a company's chaotic cash flow possibly violate the Commercial Accounting Act?" When you receive a subpoena and discover you're under investigation under the Commercial Accounting Act, do you feel wronged and panic? Our firm's attorney, Li Yusheng (a former prosecutor who has handled 237 commercial accounting cases), specializes in commercial accounting cases and will use real-world cases to deconstruct prosecutorial tactics and share the crucial "Golden 72-Hour Self-Rescue SOP"!
What exactly does the Commercial Accounting Act govern? Why does a bookkeeping error become a criminal offense?
(1) The three most common articles prosecuted by prosecutors
According to our statistics of the Taipei District Prosecutors Office's 2023 Commercial Accounting Act cases,Gundam 92%Focus on the following terms:
| Law | punishment | The "fatal evidence" most often cited by prosecutors |
|---|---|---|
| §71 of the Commercial Accounting Act (false statements) | Imprisonment of up to 5 years | There is an obvious contradiction between bank statements and accounting records |
| §72 of the Commercial Accounting Act (deliberate omissions) | Imprisonment of up to 5 years | The credentials are missing and cannot be reasonably explained |
| §41 of the Tax Collection Act (Tax Evasion) | Imprisonment of up to 5 years | Fund repatriation records and fake invoices |
💡 Lawyer Practice ReminderMany clients mistakenly believe that paying back taxes will clear them up, but the IRS data will be directly transferred to the prosecutor's office. Our firm recently handled a case involving a tech company that underreported NT$3 million. The client had already paid the back taxes, but was still prosecuted. Ultimately, we secured a non-prosecution by arguing under Section 7 of the Criminal Speedy Trial Act.
(2) These 5 common behaviors are causing you to break the law
Have you ever done these “seemingly normal” but dangerous operations?
- Invoice reversalUsing Company A’s invoices to report expenses to Company B → §71 of the Commercial Accounting Act
- Purchase order splitting: "Purchasing for employees but not recording it accurately" → Violation of §41 of the Tax Collection Act
- Lost certificate"Entering estimated amounts" without retaining original documents → Violating §72 of the Commercial Accounting Act
- Receiving public funds from personal accounts"Mixing public and private accounts" leads to chaotic financial flows → Prosecutors' favorite way to break through
- Failure to correct wrong accounts"Previous accountant made mistakes but continued to use it" → Judge found "implied consent"
2. 3 Things You Should Never Do When You Receive an Investigation Notice
❌ Misconception 1: Explain the Reason Directly to the IRS
➜ Your statement will become the evidence recorded by the prosecutor! Our case shows that67%The indictment directly quotes the parties' statements to the IRS.
❌ Misconception 2: Self-correction of original documents
➜ The prosecution will compare the modification date of the voucher. The 2023 High Court judgment (Appeal No. 123 of 2023) clearly stated: "Subsequent alteration should be presumed to be concealment of a crime."
❌ Misconception 3: Seeking a non-lawyer to handle the case
➜ Bookkeepers/Accountants do not have the right to defend criminal cases.Turnaround CaseAmong them, 81% parties missed the key opportunity for defense because they appointed non-lawyers in the early stage.
3. Lawyer's Guide! A 3-Stage Offense and Defense Strategy for Commercial Accounting Law Cases
Phase 1: The Key to “Blocking Prosecution” During Investigation
✅ Completed within 72 hours:
- Reviewing the "Information Transferred by the Internal Revenue Service" to Analyze the Weaknesses of the Prosecution's Evidence
- Comparing the Applicability of "Automatic Submission and Penalty Exemption" in §28 of the Commercial Accounting Act and §48-1 of the Tax Collection Act
- Request the prosecutor to obtain favorable evidence (e.g., supplier's actual transaction records)
📌 Success Stories: In 2024, our firm secured non-prosecution for the head of a trading company. The key was to provide "screenshots of overseas transaction emails" to prove that the expenses were not fictitious!
Phase 2: Techniques for “Cleaning Responsibility” in Trial
✅ Clarify the subject of behavior:
- Different responsibilities between the company's principal and the principal accountant (clearly defined in §74 of the Commercial Accounting Act)
- Using the "lack of subjective intent" defense (e.g., system import error, not human falsification)
Stage 3: Tips for "Striving for Probation" at the Sentencing Stage
✅ Make good use of the "criminal motive" in Article 57 of the Criminal Law to mitigate:
- Produce a "Tax Payment Certificate" to prove that there is no intention to evade tax
- Claiming "minor circumstances" and requesting a sentence reduction under Article 59 of the Criminal Law
4. Why should you contact a professional lawyer “immediately”?
- The harsh reality of time pressure:
- Our analysis shows thatFailure to file a pleading within 1 weekThe prosecution rate of casesGundam 89%
- The average number of investigations by the prosecutor's court is only17 minutes, you need a lawyer to practice "Fatal Questions and Answers"
- What makes us different:
- ✨ Accountant + Lawyer Dual Team: Simultaneously reviewing "financial and tax" and "legal" risks
- ✨ Case success rate 83%: Assisted in obtaining non-prosecution/probation in 19 commercial accounting law cases in 2023
- ✨ AI Legal Big Data: Real-time comparison of the prosecutor's past prosecution preferences
- Limited-time free rescue plan:
- 📞 24-hour emergency hotline:02-77093611(Golden Time for Requesting Evidence Preservation)
- 🔍 Free Business Accounting Law Risk Assessment: Make an appointment now
"When prosecutors start accessing bank statements, you're already on the verge of prosecution! We've used 'payment flow restoration technology' to help clients intercept cases before they're even filed. You need a professional team, not just waiting for a miracle."
—— Lawyer Li Yusheng
✍️ Call to Action: What should I do next?
- Contact us now：Line: @fdlaw
- Dial02-77093611: Inform the "urgency level" to arrange a lawyer interview time
Further reading:
The lawyers of our firm have focused on the field of commercial accounting for many years and have represented many criminal cases that have attracted public attention. They specialize in corruption regulations, violations of banking laws, violations of securities and exchange laws, violations of commercial accounting laws, commercial misappropriation, fraud, forged documents, We provide the highest quality legal services based on our rich experience in matters such as negligent injury, reputational damage, damage, obstruction of official duties, and public danger.
Commercial accounting law cases focus on more than just accounting errors.
Commercial accounting law cases often arise when a company's books, accounting vouchers, financial statements, invoices, cost recognition, revenue recognition, or internal approval processes are questioned by prosecutors. Once a company's head, financial officer, accountant, or actual operator receives a subpoena, is searched, or is named as a defendant, they typically face overlapping risks related to commercial accounting law, forgery, fraud, breach of trust, tax disputes, and even securities trading law.
Fidelity Law Firm has extensive experience in handling business, accounting, financial reporting, and major criminal cases. It can assist companies in organizing vouchers, ledgers, financial statements, board or shareholder meeting information, internal approval records, and correspondence with accountants. By approaching the issue from the perspective of the company's actual operations and accounting logic, it avoids the one-sided interpretation of commercial transactions from a purely criminal perspective.
Related services
If the case involves financial statements, taxation, or criminal liability of the company's responsible persons, please refer to the following:Criminal defense and investigative accompaniment,Tax lawyers and tax disputes,Business lawyers and corporate legal risks.
Frequently Asked Questions
Does receiving a subpoena under the Business Accounting Act necessarily mean you will be sued?
Not necessarily. A summons could be issued to a defendant, witness, or related party; the prosecution's assessment depends on the evidence, ledgers, financial records, and statements they possess. The sooner the information is compiled, the better the chance of clarifying whether it's merely an accounting dispute or administrative oversight.
Can a company's head be criminally liable if they don't understand accounting?
It's still possible. The prosecution will examine whether the person in charge actually participated in the decision-making process, whether they were aware of the false records, whether they instructed or allowed the accounting treatment, and the relevant document approval and company internal control system. Therefore, "I don't understand accounting" cannot be used as the only defense.
What documents are required for a commercial accounting law case?
Typically, it is necessary to organize accounting vouchers, ledgers, financial statements, invoices, contracts, payment records, internal approvals, correspondence with accountants, and company decision-making processes, and to establish explanations for each transaction questioned by prosecutors and investigators.
Fuda Law Firm
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Tel:0277093611
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website:https://fdlaw.com.tw/
e-mail:info@fdlaw.com.tw
Frequently Asked Questions
What should a company representative do first when they receive a summons for a business accounting law case?
First, confirm the identity of the person on the summons, the cause of the investigation, and the possible fiscal year involved. Then, organize the account books, vouchers, contracts, payment records, board or internal approval documents, and have a lawyer evaluate the transcript and the direction of the defense.
Can commercial accounting law cases also involve forgery or fraud?
Possibly. If the prosecution believes that the evidence is false, the accounting records are inaccurate, the financial statements are inaccurate, or the transaction itself has an illegal purpose, they may also investigate forgery, fraud, breach of trust, or other financial crimes.
Why do commercial accounting law cases require lawyers who are familiar with accounting and business?
These types of cases require more than just reading criminal law provisions; it also necessitates understanding accounting practices, transaction processes, corporate governance, and financial statements. Lawyers familiar with business practices are better able to identify legitimate business objectives and points of contention in evidence.
Further Reading on Commercial Accounting Law and Criminal Risks for Company Executives
If you are dealing with company, responsible persons, contracts, financial transactions, investigative, or litigation risks, it is recommended that you first organize the facts, documents, and potential legal proceedings together, rather than relying on a single keyword. The following content can help you explore related topics further and quickly determine your next steps.
Banking Act, Securities Exchange Act, Commercial Accounting Act and Financial Statement Misstatements
Business criminal and criminal risks for company executives
What to do if you are investigated under the Business Accounting Law?
What to do if you are sued for falsifying accounting records?
What is the first step after receiving a subpoena under the Business Accounting Act?
First, confirm that you are the defendant, witness, or related party. Preserve account books, vouchers, financial statements, invoices, cash flow records, and internal approval records. Before making any statements, clarify the transaction process and division of responsibilities.
Are all cases involving commercial accounting law simply accounting errors?
Not necessarily. Investigators usually examine risks such as false financial statements, forgery, breach of trust, fraud, tax evasion, or banking law violations at the same time, and cannot simply treat it as "accounting oversight".
How can company leaders mitigate the risks associated with commercial accounting laws?
The decision-making process, authorization and division of responsibilities, sources of accounting vouchers, board or shareholder meeting records and transaction purposes should be organized to establish a statement that corresponds to the books and cash flows.
If you need legal assistance to determine the next step, you can first organize the above documents and timeline, and then contact Fidelity Law Firm for assistance in assessing the direction of the process. Contact Fidelity Law Firm