Gyeonggi-do Recovers 12.2 Billion Won in Taxes Through Four 'Planned Investigations'

Gyeonggi Provincial Government Gwanggyo New Office Building

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has uncovered 5,628 cases of illegal activities through a 'planned investigation' this year, including omissions in taxation of illegal buildings, and has collected a total of over 12.2 billion KRW in additional taxes.

The province first conducted a comprehensive investigation on local tax payment status targeting about 10,000 illegal buildings detected in the province over the past five years, in cooperation with 31 cities and counties from February to April. This investigation uncovered 2,317 cases of omitted acquisition tax on unauthorized extensions and collected over 1.8 billion KRW in additional taxes.

Additionally, from May to August, the province investigated 28,106 real estate properties that had received acquisition tax reductions for farming purposes since June 2017. They identified 759 individuals and corporations who failed to fulfill reduction obligations such as mandatory usage periods, resulting in an additional collection of over 4.6 billion KRW.

Furthermore, from September to November, a planned acquisition tax investigation was conducted on 9,666 corporations with major shareholders in the province, based on data submitted by the National Tax Service. This targeted unlisted corporations and resulted in the collection of over 4.8 billion KRW in taxes.

A major shareholder refers to a shareholder or a limited liability partner of an unlisted corporation and their special related persons, including spouses and blood relatives within six degrees of kinship as defined by presidential decree, whose total shares or capital contributions exceed 50% of the total issued shares or capital of the corporation. Major shareholders are considered to have acquired real estate of the corporation proportional to their shareholding and must report and pay acquisition tax within 60 days from the date of acquiring the shares.

In addition, from November 3 to December 16, the province investigated over 48,000 sites including environmentally friendly vehicle charging facilities (electric vehicle charging stations), elevators, groundwater facilities, and automatic car wash facilities to check acquisition tax payment status. This investigation uncovered 2,107 cases and collected over 1 billion KRW in additional taxes.

Ryu Young-yong, Director of the Tax Justice Division of the province, stated, "Many omitted tax bases occur because residents are unaware that they are subject to taxation. We will actively promote awareness in cooperation with cities and counties to minimize omitted tax bases and damage to residents."

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