So from digging deeper into this issue. Taunt doesn't soak any single hit that has any form of status effect that is guarenteed. For example Montezuma in dungeons used "Montezuma Threat", and it ignored my taunted Hiriom, and went for Ixofex. However if the skill merely has a 50% effect chance, or no effect it acts normally. This needs to be fixed as soon as possible.

Update - This also does include positive status effects like shield, it isn't just negative ones.