No compete clause: Can companies find out about each other via tax filing?

Hypothetical scenario:

  • Person P lives in Taiwan on an APRC.

  • P works for company A and company B. Both jobs are legal, with both companies withholding tax from P’s monthly salary.

  • Company A have a no compete clause in their contract, forbidding P for working for company B.

Question: Is there any way for company A to find out that P works for company B when P files taxes?

Thanks.

Also interested in the legal answer. In reality word of mouth is almost surely easy enough in reality. But legally speaking i am curious as well to see if there are any laws on confidentiality.

If A sues P for violating the non-competition agreement, A can then request the court to investigate. Whether the court would entertain the request is another question.

Without a lawsuit, it seems very unlikely the tax office would (legally) give A another party’s tax information. What would be the mechanism for it?

Anyway, the best thing about non-comp’s is that they’re usually unenforceable because they’re too restrictive and don’t provide compensation.

1 Like

I don’t know if they can find out when you are filing your taxes, but they might find out if both employers are paying for your NHI at the same time. I work for two employers and one or both got a letter saying that I am overpaying my NHI fees because both employers were paying at the same time. I had previously asked one employer to stop paying because they knew I had another employer but they didn’t stop which caused the problem.

1 Like

So the OP would probably be okay as far as lawsuits are concerned, but it sounds like he wants to continue the current work situation. Usually, non-compete clauses come into play when a person leaves a first job for a second, in which case, in many instances in Taiwan, the contract clause in unenforceable for the reasons mentioned and also because the employee is usually not in sales, etc. and would therefore not be stealing clients from their former company.

1 Like