Self-developed "Public Big Data-based Tax Audit Techniques"... Yeongdeungpo-gu Recovers 2.2 Billion KRW in Local Taxes

'Resident Tax Employee Category' 2.24 Billion Won Collected, a 1240% Increase from 2022
National Health Insurance and National Tax Service Develop New Tax Audit Techniques Based on Public Big Data
Shortened Investigation Period Enhances Taxpayer Convenience and Prevents Administrative Waste... Establishing Fair Taxation Infrastructure and Expanding Fiscal Resources

Yeongdeungpo-gu (District Mayor Choi Ho-kwon) announced that it has uncovered and collected 2.2 billion KRW in resident tax employee portions, an increase of 1240% compared to 2022, using a new tax investigation method based on public big data.

This achievement is the result of efforts to build a fair taxation infrastructure and expand local finances, as well as the fruit of proactive administration grounded in creativity and expertise.

Until now, the employee portion of the resident tax was one of the tax bases that were easily overlooked. This is because businesses with an average monthly salary exceeding 150 million KRW are required to report and pay 0.5% of the total employee salary as the resident tax employee portion, but due to the voluntary reporting system, there was a high possibility of non-payment. Moreover, even if underreporting occurred, it was difficult to detect.

Accordingly, the district analyzed the number of employees and tax bases over the past seven years using public big data from the National Health Insurance Service and the National Tax Service. Then, it extracted 2,100 businesses suspected of omission or underreporting and conducted tax investigations on the resident tax employee portion from April last year to recently.

As a result, it collected 2.237 billion KRW, a 1240% increase compared to the 167 million KRW collected the year before last. This amount far exceeded the initial collection target.

The tax investigation method independently developed by the district significantly shortened the investigation period, enhancing taxpayer convenience and preventing unnecessary administrative resource waste. The process of exchanging document submissions with taxpayers was omitted, and taxpayers were proactively provided with estimated collection data based on tax bases and tax amount calculation data for confirmation.

Notably, during the full collection process, there was not a single case of tax objection or tax resistance, realizing fair and transparent tax administration.

The district expects that the ‘public big data-based tax investigation method’ will contribute to stable tax revenue collection and tax administration development, becoming a model case for local governments nationwide.

Choi Ho-kwon, Mayor of Yeongdeungpo-gu, stated, “Through the creative and proactive administration of our staff and the systematic utilization of public big data, the fairness of collection and the soundness of local finances have been further improved. We will continue to strive to ensure equitable taxation through thorough tax base management, promoting fairness between sincere and insincere taxpayers, and preventing any omission of tax bases.”

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