Gyeonggi-do Collects 1.8 Billion KRW in 'Omitted Acquisition Tax' for Illegal Buildings

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province investigated acquisition tax omissions on 'illegal buildings' and collected a total of 1.8 billion KRW in taxes.

Regardless of registration or recording, acquisition tax liability arises when real estate is effectively acquired. However, illegal buildings such as unauthorized extensions or unauthorized major repairs (dividing rooms) show a significantly low rate of acquisition tax reporting and payment.

Gyeonggi Province announced on the 4th that, in cooperation with the construction departments of 31 cities and counties, it conducted a comprehensive investigation on local tax payment status targeting about 10,000 illegal buildings detected in the province over the past five years from February to April.

In a major case, Mr. A was caught in 2018 for unauthorized major repairs that increased the number of households in a multi-family house. The province confirmed acquisition tax omissions related to the unauthorized major repairs and collected about 9 million KRW in acquisition tax from Mr. A.

In Mr. B's case, although a penalty for unauthorized extension of a commercial building was imposed in 2019, the planned investigation detected acquisition tax omissions for the unauthorized extension. Accordingly, the province additionally collected about 6 million KRW in acquisition tax.

An official from the province stated, "We will continue to discover omitted tax sources through periodic investigations on local tax payment status of illegal buildings," and added, "We will also cooperate with the departments detecting illegal buildings to inform that unauthorized extensions or unauthorized major repairs are subject to acquisition tax reporting, thereby encouraging taxpayers to fulfill their tax obligations faithfully."

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