Gyeonggi-do Detects 759 Cases of Individuals Using Agricultural Acquisition Tax Exemptions for 'Non-Agricultural' Purposes

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has identified 759 cases of individuals and corporations who received acquisition tax reductions for agricultural real estate but used the properties for other purposes such as pensions, thereby gaining undue benefits.

Gyeonggi Province announced on the 5th that from May to August, it investigated 28,106 real estate properties that received acquisition tax reductions for farming purposes since June 2017, and found 759 cases where individuals and corporations failed to fulfill obligations such as mandatory usage periods, resulting in the collection of approximately 4.576 billion KRW in additional taxes.

The province provides acquisition tax reductions on the condition that the recipients fulfill obligations such as direct cultivation for a certain period to encourage agricultural management.

Among the major cases detected, Agricultural Corporation A acquired a plot of about 3,400㎡ in Ansan City in 2019 for farming distribution and processing purposes and received a 50% acquisition tax reduction. However, the investigation confirmed that the plot was used as a pension convenience facility, and the province collected about 12 million KRW in acquisition tax and related charges.

Mr. B received a 50% acquisition tax reduction in 2021 for acquiring about 2,000㎡ of farmland in Goyang City for self-cultivation purposes. However, the province found that Mr. B did not cultivate the land himself and imposed acquisition tax and related charges amounting to about 9 million KRW.

Mr. C acquired a plot in Yangju City in 2019 and resided there but moved to Gangwon Province, 30 km away, in 2020. Since he did not meet the self-cultivating farmer requirements, the province collected about 2 million KRW in acquisition tax and related charges.

Ryu Young-yong, head of the Tax Justice Division of the province, explained, "We plan to continuously investigate real estate that only receives tax reduction benefits but is not used as intended and actively respond to fraudulent use."

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