National Tax Service Conducts Nationwide Simultaneous Tax Audit on 'Haesang Myeonseyu'

Illegal Distribution of High-Sulfur Marine Fuel and Others
Tax Evasion on VAT, Transportation Tax, etc.
Investigation Launched on Over 20 Companies

The National Tax Service (NTS) has launched a nationwide simultaneous investigation into maritime duty-free fuel companies confirmed to be involved in illegal distribution.

On the 26th, the NTS announced that it has initiated a nationwide simultaneous investigation into a total of 20 companies that illegally distributed high-sulfur maritime fuel, evading taxes such as value-added tax and transportation tax, and threatening public safety.

The investigation targets include six fueling agencies suspected of illegally diverting maritime duty-free fuel while supplying foreign vessels, three maritime fuel sales agencies suspected of distributing the illegally diverted maritime duty-free fuel, and eleven "meoktwi" gas stations suspected of selling maritime duty-free fuel to consumers.

An NTS official explained, "Following last year's investigation of meoktwi gas stations, it was confirmed that the source of illegally distributed fuel was maritime duty-free fuel supplied to foreign vessels, which led to the planning of this investigation."

Maritime duty-free fuel is normally supplied by refineries to fueling agencies upon request from foreign vessels, and the fueling agencies then supply the entire amount of maritime duty-free fuel to the foreign vessels. However, fueling agencies, in collusion with foreign vessels, do not supply the full amount of maritime duty-free fuel as instructed by the refineries, but divert part of it and sell it cheaply to maritime fuel sales agencies through brokers, thereby illegally distributing maritime duty-free fuel.

Illegal Distribution Flow of Marine Duty-Free Fuel.

According to the NTS, this process not only results in tax evasion of transportation tax and value-added tax but also poses a threat to public safety and causes environmental pollution as high-sulfur maritime duty-free fuel is used to manufacture counterfeit petroleum products.

The NTS plans to thoroughly track down the actual perpetrators of the illegal distribution of maritime duty-free fuel that threatens public livelihood, recover related taxes, and report offenders to the prosecution under the Tax Offenders Punishment Act upon detection of violations.

Additionally, starting next month, the NTS will launch the "Duty-Free Fuel Integrated Management System," which will electronically collect and integrate data related to duty-free fuel scattered across 13 agencies, including agricultural and fisheries cooperatives, forestry and shipping associations, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Oceans and Fisheries, and the Korea Customs Service. This system will enable continuous monitoring of duty-free fuel distribution and early detection of suspects involved in illegal distribution, actively promoting the eradication of illegal duty-free fuel distribution.

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