KCCI and National Tax Service Join Hands to Improve Tax System That Can't Keep Up with Field Realities

KCCI-National Tax Service Hold Meeting
Tax Dispute Zeroization Task Force

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry and Commissioner Kim Dae-ji of the National Tax Service held a meeting on the 10th and listened to explanations on 12 tax administration and tax system improvement tasks across three major areas.

[Asia Economy Reporter Hwang Yoon-joo] The Korea Chamber of Commerce and Industry (KCCI) leadership proposed to the Commissioner of the National Tax Service (NTS) measures to clarify tax laws, improve the utilization of tax support, support crisis-hit companies, and enhance the tax payment environment to overcome the COVID-19 crisis and revitalize corporate activities.

The KCCI and Seoul Chamber of Commerce leadership held a meeting with NTS Commissioner Kim Dae-ji at the Chamber of Commerce building on the 10th, proposing 12 tax administration and tax system improvement tasks across three major areas.

Attending the meeting were 14 leaders from KCCI and Seoul Chamber, including KCCI Chairman Chey Tae-won, Samsung Electronics President Lee In-yong, Hyundai Motor President Gong Young-woon, SK SUPEX Council SV Chairman Lee Hyung-hee, LG President Lee Bang-soo, Lotte Holdings President Lee Dong-woo, Hyundai Group Chairwoman Hyun Jeong-eun, Daegu Chamber Chairman Lee Jae-ha, Incheon Chamber Chairman Shim Jae-sun, Daejeon Chamber Chairman Jeong Tae-hee, and Jeonju Chamber Chairman Yoon Bang-seop.

At the meeting, the Chamber leadership proposed 12 tasks to the NTS, including ▲improving ambiguities and dispute risks in tax laws ▲addressing difficulties in utilizing the pre-review system ▲improving inheritance tax payment difficulties (expanding installment payment periods), among others.

Commissioner Kim Dae-ji of NTS: "Minimize tax burdens so companies can focus on business activities"

Commissioner Kim stated, "To actively support the rapid recovery and leap of the national economy from a tax administration perspective, we will reduce the total number of tax audits to last year's level and extend the exclusion of tax verification for small business owners until the end of this year."

He added, "To alleviate the burden of face-to-face audits, we will shorten the on-site audit period for small and medium-sized enterprises and establish an online data submission system."

He also said, "To support private sector job creation efforts, we will further relax the exclusion criteria for regular tax audits for SMEs that increase employment, and through the Korean New Deal Tax Support Centers established at tax offices nationwide, we will promptly resolve management difficulties of New Deal participating companies, thereby supporting the successful implementation of the Korean New Deal in various ways."

In particular, he explained, "For taxpayers experiencing economic difficulties, we are extending payment deadlines ex officio and making early payments of national tax refunds." The NTS plans to proactively implement tax support measures through continuous monitoring centered on the 'Tax Administration Support Promotion Team' organized at the headquarters and regional offices.

KCCI Chairman Chey Tae-won: "We need to discover and improve tax incentives that continue to be disconnected from the field"

In response, Chairman Chey proposed two collaborative tasks between the NTS and the business community to modernize tax payment practices.

Chairman Chey said, "First, there are many cases where interpretations differ between officials and taxpayers, leading to lawsuits," and proposed "the operation of a Tax Dispute Zero Task Force (TF) jointly by the NTS and the business community." This pointed out difficulties arising from discrepancies between consultation officials and responsible officials or differing interpretations among government departments.

He explained that through the Tax Dispute Zero TF, identifying potential dispute issues and providing reasonable authoritative interpretations would greatly help improve the tax payment environment. The business community expects that defining and sharing issues requiring legal amendments at the TF level will facilitate subsequent work.

Chairman Chey said, "For example, the government operates various tax incentives that contribute to economic and social development, such as research and development (R&D) investment, corporate succession, and social contributions," adding, "there continues to be a gap between corporate sites and the government regarding recognition of donations, inheritance tax, R&D, and new growth and service sectors."

He continued, "Interest and collaboration are needed to discover and find improvement measures for such cases of system-field gaps," adding, "We hope the government will modernize tax services to fit corporate sites, and companies will establish a culture of sincere tax payment so that corporate growth and fiscal expansion can create a virtuous cycle."

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