Gyeonggi-do Detects 6,600 Cases of Local Tax Fraud and Non-Reporting... Recovers 16 Billion KRW

Gyeonggi Provincial Government

Gyeonggi Province detected 6,648 cases of tax omissions, including using tax-exempt real estate for other purposes or acquiring real estate without reporting acquisition tax, and collected 16 billion KRW in additional taxes.

From February to July, Gyeonggi Province conducted joint investigations with five cities and counties within the province?Gunpo, Anyang, Yangpyeong, Icheon, and Suwon?and uncovered ▲11 billion KRW (44 cases) of underreported acquisition tax due to reduced tax rates for corporations acquiring real estate in metropolitan areas ▲11.5 billion KRW (1,442 cases) of tax-exempt real estate used for purposes other than intended ▲2 billion KRW (4,618 cases) of unreported inheritance and illegal building acquisition taxes ▲1.4 billion KRW (544 cases) of unreported resident tax and local income tax, the province announced on the 31st.

In a major case, Corporation A acquired real estate located in a metropolitan area within five years of establishing the corporation and was required to report and pay acquisition tax at a higher tax rate, but instead applied the general tax rate and underreported the acquisition tax. The general tax rate for paid acquisitions is 4%, but when a corporation established within five years acquires real estate in a metropolitan area, an 8% tax rate applies. Gyeonggi Province applied this and collected an additional 320 million KRW.

Religious organization B received an acquisition tax exemption by stating that the real estate would be used for religious and ancestral rites purposes when purchasing the property. However, the investigation revealed that some of the property was used as a pension, and other parts were left as miscellaneous land, not directly used for religious purposes. Gyeonggi Province imposed 90 million KRW in acquisition tax.

Taxpayer C and others were found to have rented or sold the house to others within three years after receiving an acquisition tax exemption for their first-ever home purchase. Gyeonggi Province imposed taxes totaling 450 million KRW on 166 violation cases.

In this investigation, aggressive delinquency measures were also taken against habitual tax delinquents, including wage and accounts receivable seizures and designation of secondary taxpayers.

Ryu Young-yong, Director of the Tax Justice Division of Gyeonggi Province, emphasized, "We will do our best to establish a stable and systematic tax revenue base by thoroughly enforcing tax administration through meticulous investigations to prevent any tax evasion or omissions."

In the second half of this year, Gyeonggi Province will conduct joint local tax investigations with Yongin, Anseong, Osan, and Paju cities.

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