Gyeonggi-do Catches 6 for Real Estate False Reporting and Acquisition Tax Evasion... 22 Million KRW Reclaimed

Gyeonggi Provincial Government

Gyeonggi Province has identified six individuals who evaded acquisition tax by falsely reporting real estate transaction amounts, including creating duplicate sales contracts, and imposed additional taxes totaling 22 million KRW.

From 2020 to 2022, Gyeonggi Province conducted a violation investigation targeting 443 people who were fined for drafting dual contracts (down contracts) with amounts lower than the actual transaction price.

After a focused investigation of the contracting parties and related stakeholders such as licensed real estate agents, six individuals including active teachers and company representatives who intentionally or fraudulently evaded acquisition tax were selected and issued administrative fines. The total omitted taxable amount (the amount deliberately underreported for taxation) for the six detected individuals was 410 million KRW.

An administrative fine is an administrative action that exempts punishment if the fine is paid within a specified period. Gyeonggi Province plans to report to the relevant prosecution office if the fine is not paid within the deadline.

In a specific case, buyer Mr. A was found to have conspired with the seller and real estate agent during the acquisition of a country house to separately draft a down contract that was 100 million KRW lower than the actual transaction amount of 600 million KRW and falsely reported it.

No Seung-ho, Director of the Tax Justice Division of Gyeonggi Province, stated, "Since acquisition tax is based on the taxpayer's voluntary reporting, the taxpayer's sincere reporting is of utmost importance," and added, "We will respond strictly with a zero-tolerance policy toward intentional tax evasion and other criminal acts."

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