National Tax Service Targets Tax Evasion from LH...Comprehensive Verification of Large Land Transactions Before Development Plan Announcement

Formation of a Nationwide Special Investigation Team for Real Estate Tax Evasion

[Sejong=Asia Economy Reporter Kim Hyunjung] The National Tax Service (NTS) is forming a large-scale investigation team to target tax evasion allegations related to land speculation by employees of Korea Land and Housing Corporation (LH). They plan to conduct a full inspection of land transaction records exceeding a certain amount before the announcement date of large-scale development areas nationwide and will also initiate tax audits.

On the 30th, Kim Daeji, Commissioner of the NTS, held a nationwide regional tax office chiefs meeting at the Sejong Government Complex, discussing the formation and operation plan of a special investigation team for real estate tax evasion with key executives from seven regional tax offices and 128 tax office chiefs. At the meeting, Commissioner Kim instructed, "Strict measures will be taken against irregular and unfair tax evasion through land and other real estate transactions."

This investigation team was established to detect and take action against cases where profits were made through real estate transactions during the development of large-scale residential and industrial complexes nationwide, but tax obligations were not fulfilled. This follows the government's announcement the previous day of a comprehensive eradication and punishment policy, with plans to investigate and prosecute tax evasion related to these profits.

The special investigation team is headed by the Deputy Commissioner of the NTS, with the Director of the Asset Taxation Bureau and the Director of the Investigation Bureau at the headquarters serving as secretaries, and the Directors of the Investigation Bureaus at regional offices acting as promotion committee members. The team is composed of 175 investigation personnel from regional tax offices and elite agents selected from tax offices in development areas, forming a nationwide organization. Additionally, a nationwide public participation-type "Real Estate Tax Evasion Reporting Center" will be established within the special investigation team to receive and handle reports of tax evasion related to real estate transactions from the public.

A comprehensive investigation of transaction records will also be pursued. The special investigation team will conduct a full inspection of land transaction records exceeding a certain amount before the announcement date of large-scale development areas nationwide, and if there are suspicions of tax evasion, tax audits will be conducted. In cases where tax evasion through fraud or other illegal acts is confirmed, prosecution will be pursued, and violations of related laws will be reported to relevant agencies for imposition of fines and other penalties.

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