National Tax Service Operates 'Big Data Analysis System' to Block Tax Evasion via Borrowed Name Accounts

One Year Since Big Data Center Launch... Advancing Scientific Tax Administration and Successful National Task Implementation
"Supporting Honest Taxpayer Reporting... Efforts to Expand Fair Taxation Infrastructure"

[Asia Economy Reporter Kwangho Lee] The National Tax Service (NTS) will strictly punish tax evasion using nominee accounts through an advanced financial transaction analysis system.

On the 2nd, the NTS announced that it has developed a big data analysis system that automatically analyzes the personal information of depositors and withdrawers using nominee accounts, as well as the reasons for deposits, by utilizing various taxation information. The system also determines whether businesses have properly reported their income, and it will be piloted starting this month.

The NTS plans to use the analysis results for selecting subjects for tax audits or guiding amended tax returns if there is suspicion of tax evasion.

In particular, from August, the financial transaction analysis system will be actively used in the nominee account analysis department to respond accurately and swiftly to tax evasion activities.

Since the launch of the Big Data Center in July last year, the NTS has been accelerating efforts to implement scientific tax administration that responds to changes in the tax environment and to successfully carry out national projects.

The Big Data Center was newly established to provide taxpayer-customized reporting assistance materials, improve user-friendly reporting environments, support taxpayers' sincere reporting to the fullest, and expand the infrastructure for fair taxation.

Last year, the center completed the construction of infrastructure capable of storing and processing large-scale data necessary for utilizing advanced analysis technologies, and carried out a total of 55 projects (27 in 2019, 28 in 2020), which are currently being used in tax administration tasks such as providing various pre-reporting guidance materials.

Kang Jong-hoon, head of the NTS Big Data Center, said, "The operation of the Big Data Center is significant in that it goes beyond simply querying and processing data, and maximizes the use of 'data,' which is as essential as rice in the era of the Fourth Industrial Revolution, to create an intelligent system." He added, "We will continue to strive to support taxpayers' sincere reporting and expand the infrastructure for fair taxation."

This content was produced with the assistance of AI translation services.