[2020 National Audit] COVID-19 Expected to Cause Record High Delinquent Payments... 8 Trillion Won in First Half

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] Due to the impact of the novel coronavirus infection (COVID-19), the amount of tax arrears this year is expected to reach an all-time high.

According to data submitted by the National Tax Service to Kim Ju-young, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, the amount of tax arrears in the first half of this year was 8.8703 trillion KRW. This is close to last year's annual tax arrears of 9.2 trillion KRW.

The corporate tax arrears in the first half amounted to 3.5118 trillion KRW, already exceeding last year's annual arrears of 3.2388 trillion KRW by about 300 billion KRW. During the same period, personal tax arrears reached 5.3585 trillion KRW, catching up to last year's annual arrears of 6.0456 trillion KRW. A staff member from Rep. Kim's office explained, "Considering the first half's arrears, the annual tax arrears this year are expected to reach an all-time high."

The amount of tax arrears deferred for settlement (expected to be written off) by the National Tax Service in the first half also reached 4.1584 trillion KRW. Deferred settlement is a term changed from write-off in 2013, referring to an administrative disposition that extinguishes the tax obligation when it is recognized that the imposed tax cannot be collected due to certain reasons.

Rep. Kim stated, "Looking at this year's national tax arrears situation, companies and the livelihood economy are facing difficulties due to COVID-19," emphasizing, "Financial support from the government is urgently needed." He added, "For malicious and intentional tax delinquents, thorough investigation is necessary to prevent the loss of national taxes, and continuous efforts by the National Tax Service are required."

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