Monopoly Shareholders Acquisition Tax Comprehensive Investigation! ... Changwon City Prevents Tax Evasion by Unlisted Corporations

Changwon City Hall, Gyeongnam.

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Changwon City, Gyeongnam Province, is conducting a comprehensive acquisition tax investigation on major shareholders of unlisted corporations from this month through May.

The city will check whether acquisition tax has been paid for unlisted corporations whose major shareholders' stock ratios have increased while holding real estate or other assets within the jurisdiction.

A major shareholder is defined as a shareholder or one limited liability partner and their special related persons, who collectively own more than 50 percent of the total issued shares or total capital of the corporation, as stipulated by presidential decree.

When a major shareholder acquires shares of an unlisted corporation, it is considered that they occupy the corporation's real estate, and the relevant major shareholder must report and pay acquisition tax within 60 days from the date they obtained the shares, according to officials.

The city plans to receive tax data from 237 corporations that have not reported acquisition tax despite changes in major shareholders' stock ownership, and will notify and impose acquisition tax on corporations that have omitted the tax.

Jo Youngwan, head of the Taxation Division, said, "We will prevent tax evasion through thorough tax base management and realize trusted tax administration through fair taxation."

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