Rep. Lee Hyung-seok Proposes 'Tax Crime Punishment Procedure Act' Reflecting Adjustment of Prosecution and Police Investigation Authority

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] Rep. Lee Hyung-seok (The Democratic Party of Korea, Gwangju Buk-gu Eul) announced on the 24th that he has taken the lead in proposing partial amendments to the "Tax Offense Punishment Procedure Act" and the "Local Tax Basic Act," which have not reflected the adjustment of investigative authority between the prosecution and police and the changed investigation system.

From this year, the amended Criminal Procedure Act reflecting the adjustment of investigative authority between the prosecution and police has been enforced. According to the amended law, prosecutors are only allowed to investigate six major crimes: corruption, economy, public officials, elections, defense business, and large-scale disasters.

Accordingly, the prosecution can directly investigate tax or local tax offenses involving evasion of 500 million KRW or more under the Tax Offense Punishment Procedure Act and the Local Tax Basic Act. Other offenses are under the jurisdiction of the police for investigation.

Under the current Tax Offense Punishment Procedure Act and Local Tax Basic Act, local tax office heads or heads of local governments must report tax or local tax offenders who are judged likely to receive imprisonment or are at risk of fleeing or destroying evidence to the prosecution or police, and if there are seized items, they must hand them over to the prosecutor.

However, the handover of seized items is limited only to prosecutors, which does not reflect the changed investigation system.

Rep. Lee said, "Although the Criminal Procedure Act, which centers on the abolition of the prosecution's investigation supervision authority and the granting of the police's primary investigation conclusion authority, has been amended to adjust investigative authority between the prosecution and police, the current Tax Offense Punishment Procedure Act does not properly reflect the changed investigation system," adding, "It is essential to amend the current law to prevent confusion in the work of local governments and others."

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