Seoul's High-Value Tax Arrears Total 185.1 Billion Won... 'Tax Evasion Secret Inspector' Will Pursue Until the End

The City and Autonomous Districts to Conduct Home Searches and Virtual Asset Tracking
Highest Individual Delinquency: 9.9 Billion Won, Corporate: 8.2 Billion Won
Cancellation Lawsuits to Counter Evasive Transfers and Gifts

The Seoul Metropolitan Government is deploying the 38 Tax Collection Division, known as the 'Tax Evasion Secret Inspector,' to take strong collection measures targeting high-value tax delinquents owing more than 10 million won. In particular, this year, the autonomous districts will jointly conduct vigorous collection activities such as home searches, crackdowns on delinquent vehicles, and tracking of virtual assets to secure tax revenue.

On the 16th, Seoul announced that it had received the collection rights for 185.1 billion won in newly incurred high-value city tax delinquencies from the 25 autonomous districts last year and has begun investigating the assets and families of high-value tax delinquents.

The previous day, payment reminder notices were simultaneously sent to 1,609 new delinquents, informing them that if they fail to pay their overdue taxes, all disposable assets such as real estate, automobiles, financial assets, pre-sale rights, and memberships will be subject to seizure, public auction, and sale, along with administrative sanctions including travel bans and provision of public record information.

Among the cases transferred to Seoul this time, the highest delinquency amount for an individual is 9.9 billion won in unpaid local income tax. This delinquent is considered a key figure in a stock manipulation case and has failed to pay local income tax on comprehensive income for the years 2021 to 2023, with the delinquency amounts transferred from Seongdong-gu and Guro-gu. The highest amount for a corporation is 8.2 billion won in acquisition tax. The corporation failed to report multiple acquisition taxes incurred during the purchase of real estate in Seocho-gu at the higher metropolitan area rate and instead reported them at the general tax rate, resulting in omissions.

Seoul plans to conduct strong collection activities such as home searches, crackdowns on delinquent vehicles, and tracking of virtual assets in cooperation with the autonomous districts regarding high-value tax delinquencies.

Among the delinquent amounts transferred this year, 286 high-value delinquents owing more than 100 million won, accounting for 72.3% of the total 133.8 billion won, will be intensively managed. To prevent evasion of tax collection, Seoul will actively pursue collection through litigation against acts such as relinquishing legal inheritance shares or failing to register inherited real estate. Additionally, fraudulent acts to evade tax claims by gifting inherited property or changing ownership to family members will be countered through cancellation lawsuits. The city plans to strictly respond to unscrupulous high-value delinquents who transfer assets to spouses, children, or operate disguised businesses.

Lee Hye-kyung, Director of the Seoul Metropolitan Government’s Finance Bureau, said, "We will concentrate the capabilities of the 38 Tax Collection Division to relentlessly track and collect taxes, thereby establishing a fair and sound taxpaying culture."

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