Ho v. United States

Background

Jian-Ci Ho sued the United States in the Northern District of California seeking a refund of payments made after the Internal Revenue Service determined that he had failed to report control over several foreign corporations. The opinion states that Ho paid amounts assessed against him for failing to report control over Peak Picture Company, Ltd. in 2012. The United States later filed a counterclaim for the remaining assessments.

The United States seeks information about Ho’s alleged control of Atum Technology Corporation, which was incorporated in Taiwan and was the majority shareholder of three of the foreign corporations at issue. The United States alleges that Ho controlled Atum from 1998 through 2012. To prove that allegation, it must show that Ho owned, directly, indirectly, or constructively, more than half of Atum’s voting power or share value during the relevant period. Ho alleges that he never held a controlling interest and that most of Atum’s shares were held by other people or entities.

Requested Assistance

The court issued a request for international judicial assistance, sometimes called a letter rogatory, asking Taiwan’s appropriate judicial authority to obtain evidence for use in the federal case. The request seeks:

- Atum’s corporate filings from Taiwan’s Ministry of Economic Affairs and Taipei City Government, including records concerning incorporation, dissolution, shareholders, share distribution, voting power, assets, and liabilities from 1998 through 2012; - The prosecution and first-instance court files from a specified criminal case in Shilin District Court, along with exhibits and related prosecution files concerning a criminal complaint filed by Atum against Arthur Chiao; - Files from the Control Yuan concerning an investigation into prosecutorial conduct and any investigation of Arthur Chiao initiated in response to complaints filed by Ho; - Files concerning a 2014 decision by the Ministry of Justice Administrative Enforcement Agency regarding funds potentially belonging to Atum; - Court filings from any bankruptcy, dissolution, or liquidation proceedings involving Atum; and - Documents concerning Atum’s share ownership held by Arthur Chiao, Atum officers and former officers, a former attorney, former shareholders, former accountants, and an investigator.

The request states that the records are necessary to resolve the parties’ dispute and are not otherwise obtainable through the federal court’s compulsory process. The United States and, for specified requests, Ho agree to reimburse reasonable compliance costs.

Ruling and Effect

Judge Jon S. Tigar issued the request and stated that the court was authorized to seek evidence under 28 U.S.C. § 1782 and the court’s inherent authority. The court also stated that it was prepared to provide similar assistance to Taiwanese courts in like cases. This document requests assistance; it does not decide the merits of Ho’s refund claim, the United States’ counterclaim, or whether Ho controlled Atum Technology Corporation. The opinion does not state whether Taiwan granted or will grant the requested assistance.