"Delinquent Taxpayers Who Moved Residences Beware"…Gyeonggi-do's 'Collection Request System' Achieves Great Success

[Asia Economy (Suwon) = Reporter Lee Young-gyu] # Delinquent taxpayer A owes 5 million won in local taxes in Yongin City and Hwaseong City and then moved residence to Bucheon City. Yongin and Hwaseong had difficulties in handling the delinquent taxpayer due to A’s relocation outside their jurisdictions. Accordingly, Gyeonggi Province notified Bucheon City of the delinquency, and Bucheon City impounded A’s car license plate and collected 4.4 million won. Bucheon City sent 3.08 million won, which is 70% of the collected amount, to Yongin and Hwaseong, and retained the remaining 1.32 million won as collection commission fees (non-tax revenue).

Through the 'Collection Commission System,' which delegates collection authority for delinquent taxpayers who have moved residences to two or more local governments to one jurisdiction such as their current residence, Gyeonggi Province achieved additional collection of 518 million won from 958 delinquent taxpayers over six months.

If a delinquent taxpayer moves to another city or county without settling their arrears, the previous jurisdiction faces inefficiency in processes such as sending delinquency notices and making visits for collection.

To solve this problem, the Collection Commission System was introduced as a kind of collection agency system between local governments. The local government where the delinquent taxpayer resides can receive 30% of the collected amount as a commission fee when handling the collection of arrears registered in other jurisdictions.

Accordingly, from April to October, the province conducted a comprehensive investigation of 170,000 people who owed more than 1 million won in local taxes in two or more cities/counties within the province. Then, in cooperation with the relevant cities/counties, the province collected 169.1 billion won from 27,453 people through measures such as impounding car license plates and auctioning. Among these, 518 million won (from 958 people) was arrears from jurisdictions other than the delinquent taxpayers’ current residence. The cities/counties that performed the collection work secured 155 million won, which is 30% of the collected amount, as non-tax revenue (commission fees).

Kim Min-kyung, Director of the Tax Justice Division of the province, said, "We will actively utilize the Collection Commission System for delinquent taxpayers with arrears in two or more local governments so that malicious delinquent taxpayers cannot hide anywhere in Gyeonggi Province or nationwide." She added, "We will actively consider expanding the Collection Commission System not only within cities/counties in the province but also nationwide, and broadening the disposal of arrears from mainly cars to real estate auctions and other methods."

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