National Tax Service Launches Investigation into High-Value and Habitual Tax Delinquents: "Recovering 336.1 Billion KRW in Arrears"

[Asia Economy Sejong=Reporter Kim Hyewon] #1. Corporation A, which guaranteed high returns and raised investment funds, closed down without paying the withholding income tax after distributing investment profits. However, it was confirmed that the corporation's owner family leased luxury imported cars under the corporation's name and lived a lavish life in a high-end residence, leading to the seizure of lease deposits and the start of an investigation into property concealment charges.

#2. Loan shark B failed to report comprehensive income tax on high-interest income, resulting in a large amount of tax arrears, but transferred real estate inherited from parents to children before seizure. Following a tracking investigation, the tax authorities confirmed the gift and fraudulent acts to evade compulsory collection and filed injunctions on the children’s real estate ownership and lawsuits to cancel the fraudulent acts.

#3. Land tycoon C, who sold high-priced real estate and defaulted on capital gains tax, evaded compulsory collection by registering his real estate under relatives’ names. Through big data analysis of the defaulter and relatives, it was confirmed that they were actually residing at the divorced spouse’s address, leading to house searches and other actions.

On the 24th, the National Tax Service announced that it has launched a tracking investigation into 584 high-amount and habitual tax delinquents suspected of concealing assets (tax arrears totaling 336.1 billion KRW).

This tracking investigation targets high-amount delinquents who lease or use luxury imported cars (90 people), delinquents who illegally transferred assets to spouses or others (196 people), and high-amount delinquents suspected of evading compulsory collection by living lavishly or disguising businesses under others’ names (298 people).

Since this year, the National Tax Service has newly established tax delinquency tracking management teams at regional offices and is piloting dedicated tax delinquency tracking squads at tax offices, comprehensively reorganizing the organization and system to strengthen responses against malicious high-amount tax delinquents.

Last year, through tracking and collection activities targeting high-amount delinquents who concealed assets with virtual assets, the agency achieved the collection and securing of 2.5564 trillion KRW in delinquent taxes.

In the case of delinquent D, who concealed part of the real estate sale proceeds by exchanging them into foreign currency to evade compulsory collection, 700 bundles of new 100-dollar bills were found inside a black plastic bag hidden in a jar among miscellaneous items on the veranda, and cash was collected. Foreign currency and 800 million KRW in cash hidden in the wardrobe of a house registered under a child’s name were seized, as well as 50 don of pure gold from a VIP tax delinquent residing in a luxury house and shopping at a department store.

Last year, the National Tax Service also increased legal actions by filing 834 civil lawsuits to recover concealed assets and prosecuting 366 delinquents who deliberately concealed assets as tax evasion offenders.

The National Tax Service plans to actively utilize the concealed asset reporting reward system. The maximum reward amount is 3 billion KRW.

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