Seoul Gangseo-gu Wins 'Grand Prize' for Outstanding Local Tax and Non-Tax Revenue Case

Awarded Grand Prize for 'Trust Property Debt Attachment' Case... Securing Fiscal Revenue through Active Debt Attachment on Trust Property

[Asia Economy Reporter Park Jong-il] Gangseo-gu, Seoul (Mayor Noh Hyun-song) won the 'Grand Prize' at the 2020 Local Non-Tax Revenue Best Practice Presentation Contest hosted by the Ministry of the Interior and Safety.

The Ministry of the Interior and Safety has been holding the 'Local Non-Tax Revenue Best Practice Presentation Contest' annually since 2010 to discover and share various ideas on innovation in non-tax revenue operations and collection management, aiming to expand local finances.

This year's contest was conducted entirely in writing for both the first and second rounds due to COVID-19, and after in-depth evaluation by external experts, 15 local governments were selected as best practices out of a total of 107 local governments in the first round.

The district participated with the case of 'Trust Property Bond Seizure' and achieved the great success of winning the Grand Prize among the 15 best practices that passed the first evaluation (2 Grand Prizes, 9 Excellence Awards, 4 Merit Awards).

The 'Trust Property Bond Seizure' case is an example of collecting delinquent taxes through active bond seizure efforts on trust property.

It is difficult to take delinquency measures on real estate entrusted to a trust company after acquiring ownership because seizure actions cannot be taken under the Trust Act.

However, based on the proviso clause that seizure is possible for rights arising from the handling of trust affairs specified in the Trust Act, the district issued bond seizure notifications for the income payable by the trust company to the delinquent taxpayer as the trustor and for the ownership transfer claim rights.

As a result, about 24 million KRW out of the total delinquent amount of about 27 million KRW was collected.

In particular, the district received high praise for raising awareness that tax evasion through trusts is impossible and for promoting sound tax payment consciousness among taxpayers through this case.

Mayor Noh Hyun-song said, "Since local non-tax revenue is one of the major financial resources of local governments, being selected as an excellent operation case is very meaningful," and added, "We will continue to seek various ways to increase non-tax revenue and strive to expand local finances."

Meanwhile, the district was also selected as the 'Best Local Government' in the 2020 (2019 fiscal year) local government financial analysis held last October.

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