"Hiding Lotto First Prize Winnings and Failing to Pay Overdue Taxes... This Year's Collection of High-Value, Habitual Delinquencies Hits Record High"

This year, through tracking investigations of high-amount and habitual tax delinquents, the National Tax Service (NTS) collected a record-high amount of 2.8 trillion won. Some delinquents hid lottery winnings or concealed income as virtual assets.

The NTS announced on the 29th that as a result of actively conducting property tracking investigations on deliberate and intelligent high-amount and habitual delinquents, it collected and secured about 2.8 trillion won, the highest ever from January to November.

This year, the NTS thoroughly conducted property tracking investigations by expanding planned analyses and strengthening on-site collection activities against high-amount and habitual delinquents who hide assets and evade tax payments despite having economic capacity.

In the first half of this year, the NTS focused collection activities on high-amount delinquents who evaded forced collection using irregular methods, concealed assets, and lived lavish lifestyles. As a result, delinquents who acquired real estate in the form of joint ownership registrations with multiple people or made forced collection difficult by falsely registering mortgages with related parties, as well as those who concealed assets after winning large lottery prizes such as Lotto, were detected.

For example, distributor Mr. A recently won a Lotto first prize worth several billion won but had not paid any overdue taxes. Instead, he transferred the winnings to family accounts and withdrew some in cash and checks. The NTS seized the account receiving the winnings and began a property tracking investigation on the cash and check withdrawals.

Additionally, NTS investigations found delinquents who managed income and assets through family and relatives while living luxuriously by purchasing luxury bags and shoes, residing in high-priced homes, and driving luxury vehicles.

In the second half of the year, the NTS conducted intensive property tracking investigations on delinquents who transferred and concealed assets under the names of related parties, new high-income delinquents and professionals, and those who concealed assets using virtual assets. The targets included ▲delinquents who transferred and concealed assets under related parties’ names ▲new high-income delinquents and professionals ▲delinquents who concealed assets using virtual assets.

Mr. B, who runs a food company, reported business closure after a tax audit imposed comprehensive income tax due to omitted sales. However, he actually continued the same business under his child's name to evade forced collection and enjoyed a lavish lifestyle by driving an expensive imported car. The NTS conducted multiple stakeouts and inquiries, confirmed that the delinquent lived in an apartment under his spouse’s name, and searched the actual residence. The delinquent resisted opening the front door for a long time and hid cash stored in a safe in other places such as under the safe and the veranda. The NTS seized 500 million won in cash bundles, precious metals, luxury bags, etc., collecting a total of 600 million won.

The NTS also tracked business owners who concealed assets using virtual assets after owing large amounts of taxes. Mr. C, a mobile phone seller, long evaded income tax from business income and concealed part of his income as virtual assets to avoid forced collection. The NTS confirmed the types and market prices of virtual assets held by the delinquent from virtual asset exchanges and immediately enforced collection, recovering the entire delinquent amount.

There were also high-income YouTubers who evaded tax payments while living luxuriously. One-person media operators who earned hundreds of millions of won annually from advertising income but diverted it to accounts under relatives’ names to avoid paying taxes, as well as high-amount delinquents in professions such as oriental medicine doctors, pharmacists, and judicial scriveners, could not escape the NTS’s tracking investigations.

An NTS official said, "Going forward, the NTS will continue to track and collect hidden assets from malicious high-amount delinquents who evade tax obligations to uphold tax justice," adding, "We will strive to establish a sound tax culture where taxpayers who faithfully pay taxes are respected."

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