Songpa-gu, Comprehensive Survey on Unreported and Underreported Local Income Tax

Actively Uncovering Omitted Tax Sources Using Big Data, Including 737 Unreported Cases

[Asia Economy Reporter Jong-il Park] Songpa-gu (Mayor Park Seong-su) will conduct a full investigation into unreported and underreported local income tax for the 2019 tax year.

Starting this year, as the individual local income tax has been converted into an independent tax, the district aims to expand autonomous revenue sources and realize tax justice by actively discovering omitted tax bases using big data-based investigation techniques.

To this end, by November 30, the district plans to analyze the filing and payment data of 70,248 cases of individual local income tax and 17,116 cases of corporate local income tax, verify notification data from the National Tax Service and other local governments, and cross-verify tax data between tax categories.

In particular, 737 cases of unreported local income tax will be intensively investigated, and the appropriateness will be verified through one-to-one matching of tax data to check for discrepancies in the tax base and underreporting.

Additionally, through linking tax data, cases of duplicate payments made by manual payment slips after electronic filing and payment will be immediately refunded, and in cases of erroneous tax payments by corporations, requests for transfer of tax revenue between local governments will be made to enhance taxpayer convenience.

Considering the COVID-19 situation, the district is also taking the lead in protecting the rights of diligent taxpayers by sending mobile refund notices to those eligible for local tax refunds.

According to the district, as of September, unclaimed local tax refunds amounted to 378 million KRW. The majority of these are due to unclear addresses, overseas residence, death, and low taxpayer interest in small refund amounts.

Accordingly, in addition to existing methods such as mail and phone, a mobile mail sending system has been added to send local tax refund notices.

Applications for local tax refunds can be made via eTax, ARS, or text message, and after application, the refund is deposited into the applicant's account within 2 to 3 days.

Park Seong-su, Mayor of Songpa-gu, stated, “We are developing various methods to facilitate tax payment and realize tax justice,” and added, “We will continue to implement regular cross-verification of local income tax data and services to recover unclaimed refunds to provide trusted tax administration.”

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