Assemblyman Hong Seong-guk: "National Tax Service's Average Fine Collection Rate Over 4 Years Is Only 30%"

[Asia Economy Sejong=Reporter Kim Hyewon] It has been revealed that the National Tax Service (NTS) imposes fines but the actual collection rate over four years averages only in the 30% range.

According to the National Assembly's National Tax Service audit data submitted to Hong Seong-guk, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea (Sejong Special Self-Governing City Gap), the NTS decided to collect a total of 258.794 billion KRW in fines last year, but only managed to collect 32.7%, or 84.677 billion KRW.

The NTS imposes fines for legal violations specified in laws such as the Framework Act on National Taxes, the Income Tax Act, and the Act on Punishment of Tax Offenses.

Looking at the fine collection rates from 2018 to 2021, the rates were 35.3% in 2018, 28.2% in 2019, 26.8% in 2020, and 32.7% in 2021. The average collection rate was 30.8%. This year, the collection rate was only 4% as of July.

By reason for fines, as of last year, fines imposed for violations of the obligation to issue cash receipts amounted to 167.83 billion KRW, accounting for 72% of all fines. The collection rate was only 21.5% (40.674 billion KRW), which was cited as a major cause of the low fine collection rate.

Fines for violations of the obligation to report overseas financial accounts increased nearly threefold from 22.253 billion KRW in 2018 to 61.414 billion KRW last year.

Representative Hong said, "The fine collection rate has been chronic, hovering around 20-30% every year," and added, "Measures to improve the fine collection rate, such as strengthening the collection task organization, should be devised."

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