Gyeonggi-do Recovers 99.9 Billion KRW Through Local Tax Audits Including Acquisition Tax

Gyeonggi Province conducted tax audits on corporations that underreported local real estate taxes or improperly received tax reductions last year, recovering a total of 99.9 billion KRW from 3,575 corporations.

By tax category, the recovered amounts were ▲ provincial taxes such as acquisition tax 85.8 billion KRW (86%) ▲ municipal taxes such as property tax 10.4 billion KRW (10%) ▲ national taxes 3.7 billion KRW (4%).

Gyeonggi Province first conducted joint tax audits with city and county governments on 89 corporations selected through the 2024 Local Tax Deliberation Committee, recovering 46 billion KRW. The audit targets were corporations that acquired real estate worth 5 billion KRW or more or received local tax reductions or refunds of 100 million KRW or more. In addition to the joint tax audits, 53.9 billion KRW was recovered through independent investigations by city and county governments.

Major recovery cases include Corporation A, a large-scale land development project implementer, which omitted various charges related to land category changes and infrastructure construction costs, and underreported the development cost during the land development process, resulting in a recovery of 19.2 billion KRW in acquisition tax and others.

Corporation B, which reclaimed public waters and is effectively using the land, omitted related direct and indirect costs, resulting in an acquisition tax imposition of 1.8 billion KRW.

Gyeonggi Provincial Government

Corporation C expanded a data center (IDC) within an industrial complex and received an acquisition tax reduction, but operated by housing servers and management personnel of other corporations in the property, resulting in a recovery of 4.1 billion KRW in local taxes.

Gyeonggi Province plans to further expand tax audits this year on land development projects, urban development projects, and redevelopment and reconstruction projects that were detected during last year’s tax audits.

No Seung-ho, Director of the Tax Justice Division of Gyeonggi Province, stated, "We are focusing on preventing local tax leakage and strengthening the foundation for fair taxation through regular tax audits," adding, "We will continue to develop the capabilities of tax audit personnel to ensure transparent and fair tax audits."

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