Daejeon City Seizes Accounts in Secondary Financial Institutions of Tax Delinquent Evading Collection

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City will seize accounts at secondary financial institutions of local tax delinquents to collect taxes. This method involves identifying delinquents who use secondary financial institutions instead of commercial banks to evade tax collection, seizing their assets, and then collecting the taxes.

On the 17th, the city announced that it will investigate deposits, savings, insurance payouts, and securities accounts held at secondary financial institutions such as regional Nonghyup, credit unions, Saemaeul Geumgo, and insurance companies for 4,438 local tax delinquents with arrears of 1 million KRW or more, and seize financial assets worth 21.9 billion KRW from 432 delinquents.

It was revealed that these delinquents held deposits and savings of 7.1 billion KRW, insurance payouts of 14.1 billion KRW, and securities accounts of 700 million KRW at various secondary financial institutions. Conversely, the total amount of unpaid local taxes was 91.6 billion KRW. This indicates that the delinquents had substantial unpaid tax amounts despite having financial assets.

The city plans to collect individual local tax arrears from the financial assets of delinquents held at secondary financial institutions, excluding the minimum living expenses (1.85 million KRW).

Once the city seizes assets and pursues debt collection, delinquents will be unable to conduct financial transactions until they pay the local taxes and the seizure is lifted.

Meanwhile, the city conducted a comprehensive investigation based on the fact that delinquents might use secondary financial institutions to avoid seizures and that institutions like Saemaeul Geumgo have a regional characteristic of being located near depositors' residences and workplaces.

Earlier this year, in the first half, the city collected 1.2 billion KRW from the financial assets of 461 delinquents by seizing deposits in primary financial institutions.

A city official stated, “We will collect delinquent taxes through the disposition of chronic and malicious delinquents, and for livelihood-type delinquents facing financial difficulties due to COVID-19, we will minimize citizen inconvenience by implementing measures such as installment payments and postponement of deposit seizures.”

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