Harsh Crackdown on Malicious High-Value Tax Evaders... Intensive Investigation Conducted on 812 Individuals

Focused Tracking on Property Concealment Suspicions Including Real Estate Evasion Through Big Data Analysis

[Asia Economy Reporter Kwangho Lee] On the 5th, the National Tax Service announced that it will conduct intensive tracking investigations on 812 malicious high-amount tax delinquents who conceal assets and evade tax collection measures by illegally transferring property.

The subjects were selected through big data linkage analysis of the property details, business details, income and expenditure details of the delinquents, their spouses, and special related parties.

The main types include 597 suspects who transferred real estate to special related parties in the form of sales without payment, or concealed assets under another person's name such as special related parties with unclear income sources acquiring apartment pre-sale rights; 128 suspects who closed their own business and reopened the same type of business at the same location under another person's name, effectively continuing the business themselves under a false name; and 87 suspects who concealed assets by recovering foreign exchange such as export payments under the name of special related parties or transferring domestic assets overseas.

The National Tax Service plans to thoroughly verify the source of funds such as purchase (jeonse) payments and business start-up funds by utilizing financial inquiries on delinquents and their relatives suspected of concealing assets. If acts of illegal asset transfer, asset concealment, or evasion of tax collection measures such as false mortgage registration are confirmed, they will file lawsuits to cancel fraudulent transactions. For malicious high-amount delinquents living in luxury homes or leading extravagant lifestyles, they will conduct focused searches of residences to track down and recover hidden assets to the fullest extent.

Furthermore, if the tracking investigation reveals intentional evasion of tax collection measures, both the delinquent and their accomplices will be reported as evaders of tax collection measures and criminal prosecution will be pursued.

Jung Cheol-woo, Director of the Tax Collection Legal Affairs Bureau, stated, "Since 2021, we have strictly responded to malicious high-amount delinquents who have the ability to pay but do not pay by detaining them in custody for up to 30 days. However, we plan to provide maximum tax administration support such as deferral of tax collection measures for livelihood-type delinquents who are struggling to pay taxes."

Meanwhile, from January to August this year, the National Tax Service collected or secured a total of 1.5055 trillion won through residence searches and other measures, filed 449 lawsuits to cancel fraudulent transactions, and reported 290 people as evaders of tax collection measures.

In particular, to verify the accuracy of big data analysis results, searches were conducted at the estimated actual residences of 28 delinquents analyzed to be living at addresses different from their registered addresses. The actual residences of 24 people matched the estimated locations, 1.2 billion won was collected in cash, and 23 people were reported as evaders of tax collection measures.

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