Songpa-gu Discovers 16.222 Billion KRW in Unreported Tax Revenue Using Big Data

Operation of Special Investigation Team and Active Use of Big Data Investigation Techniques... Discovery of Over 31,000 Missing Tax Cases

[Asia Economy Reporter Jongil Park] Songpa-gu (Mayor Park Seong-su) conducted a full investigation into the non-reporting and underreporting of local income tax for the 2019 tax year, detecting 31,444 omitted tax cases and expanding revenue by 16.222 billion KRW.

Local income tax is a local tax imposed on residents who are members of local governments and is classified into corporate income, comprehensive income, capital gains, and special withholding based on income scale.

Since 2014, to enhance local governments' independent revenue sources, the tax system has shifted to an independent tax method, requiring taxpayers to file separate local income tax returns simultaneously with their national income tax returns.

The district organized and operated four special investigation teams to discover omitted tax sources, conducting a full analysis of 70,248 individual local income tax and 17,116 corporate local income tax filing and payment data.

During the investigation, big data utilization techniques were actively employed to focus on non-reporters and underreporters. Verification included checking for discrepancies in tax bases through one-to-one matching of tax data and cross-verification of notification data from the National Tax Service and other local governments.

Through this, 2,151 cases of corporate income, 8,366 cases of comprehensive income, 1,245 cases of capital gains, and 19,682 cases of special withholding local income tax were detected, uncovering omitted tax sources.

Mayor Park Seong-su stated, “We are making efforts to provide convenience to residents by utilizing various content such as SNS and YouTube to assist accurate reporting and payment of local income tax,” adding, “We will strive to enhance the reliability of local taxes and improve Songpa-gu’s image as a business-friendly district by regularizing cross-verification of local income tax data to realize tax justice.”

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