Daejeon City, Corporate Tax Audits Result in 1,188 Cases and 2.5 Billion KRW Recovered

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City announced on the 11th that it conducted corporate tax audits from April to June and collected an additional 2.5 billion KRW in local taxes from 1,188 cases, including acquisition tax.

According to Article 82 of the Local Tax Basic Act, the city conducts intensive investigations every year from April to December on 452 corporations within the jurisdiction, focusing on omissions in tax item reporting, underreporting, and the appropriateness of tax imposition.

The corporations subject to tax audits are selected based on objective criteria such as real estate acquisition corporations with assets over 5 billion KRW, capital, and business scale, and then finalized through deliberation by the Local Tax Deliberation Committee.

However, the city explained that to minimize the burden on corporations, the investigation is mainly conducted through document reviews of corporate ledgers.

This year, the city conducted tax audits on some corporations that failed to report acquisition tax despite becoming major shareholders by acquiring more than 50% of the shares of unlisted corporations and acquiring real estate of the relevant corporation, which requires voluntary reporting of acquisition tax proportional to the major shareholder ratio.

The city focused on tracking taxable items such as real estate acquisition tax, achieving a record-high collection of 1.9 billion KRW in acquisition tax from a single corporation.

A city official stated, “In cases where a major shareholder is established by acquiring shares of an unlisted corporation, there are instances where additional penalties are imposed due to failure to report acquisition tax,” and added, “In such cases, we urge corporations to consult the tax department in advance to avoid disadvantages.”

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