Pyeongtaek City Expands Local Taxes by 18.8 Billion Won Last Year Through Targeted Tax Audits

Active Collection of Omitted and Underreported Taxes
"Ensuring Fair Taxation Through Thorough Tax Audits"

Pyeongtaek City in Gyeonggi Province announced on the 5th that it conducted a local tax audit last year and recovered 18.8 billion KRW.

The city secured 17.4 billion KRW through a regular tax audit targeting 100 corporations, including acquisition tax. Additionally, it uncovered 1.4 billion KRW in tax evasion through a planned tax audit investigating whether tax reduction beneficiaries in industrial complexes directly used the properties. The city explained that this performance represents a 38% increase compared to the 13.6 billion KRW recovered from the previous year's tax audit.

In fact, the city confirmed that Company A, the land development project operator, underreported acquisition tax related to land development charges and provisions for cost liabilities within the project district, resulting in a recovery of 11.1 billion KRW. Manufacturing Company B was found to have failed to report acquisition tax of 1.2 billion KRW on facilities such as gas pipes and storage tanks. Company C, which acquired land in the industrial complex and received acquisition tax reductions, was fined 1 billion KRW for not directly using the land for the intended purpose within the grace period.

The city is producing and distributing an electronic book-style "Local Tax Guide for Entrepreneurs" using QR codes to address recurring local tax evasion cases. Along with this, to support regional economic recovery, the city is deferring tax audits for companies that pay taxes faithfully and is implementing a tax audit period selection system that allows corporations subject to regular audits to choose the audit period quarterly.

A city official stated, "We plan to actively collect corporate opinions to reduce the burden of tax audits on companies and encourage proactive cooperation," adding, "For corporations that omit or underreport, we will conduct thorough tax audits to ensure no tax sources are missed and strive to realize fair taxation."

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