Moon Administration Significantly Increases Tax Audits on High-Income Companies... 21.2% Higher than Park Administration

Data from Rep. Kim Sang-hoon of the People Power Party
Number of corporate tax delinquencies actually increased by an average of 6,381 cases per year... Delinquent amount also up 18.6%

[Asia Economy Sejong=Reporter Kwon Haeyoung] It has been revealed that tax audits on high-income companies significantly increased during the Moon Jae-in administration.

According to data submitted by the National Tax Service to the office of Kim Sang-hoon, a member of the National Assembly's Planning and Finance Committee from the People Power Party, tax audits on companies with annual revenue exceeding 150 billion KRW averaged 526 cases per year from 2017 to 2021 under the Moon administration. During the previous Park Geun-hye administration (2013?2016), the average was 434 cases per year, meaning tax audits increased by as much as 21.2% under the Moon administration.

In particular, in 2021, when the overall economy was struggling due to COVID-19, tax audits on high-income companies reached a record high of 593 cases.

Corporate tax delinquencies also increased significantly during the Moon administration. The average annual number of corporate tax delinquency cases was 83,870 during the Park administration, but rose by 7.6% (6,381 cases) to 90,251 cases annually under the Moon administration (excluding delinquency cases in 2021 when COVID-19 tax support measures were implemented). In 2021, delinquencies sharply decreased to 61,730 cases due to tax support measures such as collection deferrals and payment extensions implemented in response to the COVID-19 outbreak.

The amount of corporate tax delinquency also increased from an average of 1.5467 trillion KRW annually during the Park administration to 1.8337 trillion KRW annually during the Moon administration, a rise of 18.6% (287 billion KRW).

At the launch of the Moon administration, national tasks included strengthening taxation on various corporate gains and income, significantly reducing non-taxable and exemption systems for large corporations, and enhancing taxation on concealed income. However, delinquencies increased substantially instead.

Assemblyman Kim Sang-hoon stated, "While wrongful tax evasion by companies should be severely punished, punitive tax policies suppress corporate management activities and ultimately lead to a decline in economic vitality. The Yoon Suk-yeol administration should abolish the anti-business tax policies of the previous government and implement tax administration that allows companies to conduct proper management activities."

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