Gyeonggi-do Collects 24.2 Billion Won Through Post-Investigation of Improper 'Tax Exemptions and Reductions'
[Asia Economy (Suwon) = Reporter Lee Young-gyu] It has been revealed that Gyeonggi Province investigated the appropriateness of over 16,000 tax-exempt and reduced items through local tax post-management inspectors last year and collected 24.2 billion KRW in local taxes. This amount represents a 72.9% increase compared to the 14 billion KRW collected from reduced real estate in 2021.
The province has been conducting local tax post-management investigations since 2019. Last year, 41 local tax post-management inspectors were hired in 10 cities and counties, including Bucheon City, to carry out the investigations.
The tax-exempt or reduced items subject to post-management investigation are mostly knowledge industry centers and industrial complexes that received local tax reductions on acquisition tax, property tax, automobile tax, etc., according to relevant laws. Additionally, real estate acquired for direct use by self-cultivating farmers and vehicles for prosthetic use by disabled persons are also subject to investigation.
Current law sets a grace period for tax reductions ranging from one to five years based on the time required to use the acquired real estate for its intended purpose and the minimum period considering the purpose of use of the acquired vehicle. However, if use outside the intended purpose, sale, or gift is expected or occurs during this period, taxpayers are guided to voluntarily report and pay in advance, or violations are subject to additional collection.
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Choi Won-sam, head of the Taxation Division of the province, stated, "Through the local tax post-management investigation project, we will do our best to strictly manage and fairly operate the special cases eligible for tax benefits." He added, "We will continue to implement the current system to provide prior notice before the expiration of the reduction grace period to alleviate taxpayers' additional tax burdens caused by improper reductions."
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