Ando Geol Urges Improvement of System to Eliminate Tax Blind Spots

"Review of Corporate Tax Imposition on Shared Accommodation Platforms"
"Feasibility of Exempting Acquisition Tax for Public Golf Courses"
"Reorganization of Liquor Tax Reduction Requirements for Local Specialty Liquors"

Democratic Party of Korea lawmaker Ando Geol urged institutional improvements to address the 'tax blind spots' such as shared lodging businesses, public golf courses, and local specialty liquors during the comprehensive audit of the Planning and Finance Committee held at the National Assembly on the 28th.
[Photo by Ando Geol]

Democratic Party of Korea lawmaker Ando-geol (Gwangju Dongnam-eul) raised concerns about the taxation of shared lodging businesses, the validity of individual consumption tax exemptions for public golf courses, and inadequate on-site management of local specialty liquor tax reduction requirements during the comprehensive audit of the Planning and Finance Committee held at the National Assembly on the 28th, urging for system improvements.

First, Representative Ando emphasized that Airbnb, which virtually monopolizes the domestic shared lodging industry, is in a tax blind spot and argued for proper taxation measures. Last year, Airbnb's shared lodging transaction volume was approximately 1.2 trillion KRW, a fourfold increase compared to five years ago. Based on the transaction volume, it is estimated that about 15 to 20 billion KRW in corporate tax should be paid. However, it remains uncertain whether proper taxation has actually been implemented.

Representative Ando stated, “Shared lodging platforms are in a tax blind spot,” and added, “The National Tax Service should actively consider imposing corporate tax if tax evasion occurs domestically, referring to Italy’s case where 820 billion KRW in taxes were collected from Airbnb.”

He then called for a review of the validity of individual consumption tax exemptions when public golf courses sell priority rights to users of accommodation package products. The purpose of exempting individual consumption tax for public golf courses is to promote the popularization of golf by allowing anyone to use golf courses at reasonable prices through first-come, first-served reservations. However, from this year, related laws have been amended to allow public golf courses to partially sell priority usage rights, which is criticized as contrary to the original intent of the tax exemption.

Representative Ando emphasized, “The sale of priority usage rights by public golf courses contradicts the original purpose of the individual consumption tax exemption,” and urged, “The Ministry of Economy and Finance should review the validity of this and consider imposing 50% of the individual consumption tax.”

Additionally, Representative Ando demanded on-site verification and strengthening of management systems regarding the 50% tax reduction requirements for local specialty liquors. Local specialty liquors are made using raw materials from adjacent regions and receive benefits such as tax reductions and liquor e-commerce privileges. However, recently, some liquor manufacturers were found by the National Tax Service to have received tax reduction benefits without using local raw materials, raising questions about the effectiveness of the current management and supervision system for local specialty liquors.

Representative Ando urged, “Due to insufficient on-site verification and supervision of local specialty liquors, cases have occurred where tax reduction benefits were received without using local agricultural products,” and added, “The National Tax Service should consult with related agencies such as the Ministry of Agriculture and Forestry to prepare effective measures, including transferring the authority for verification and management of local specialty liquors to the National Tax Service.”

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