Gyeonggi Province Collects 27.8 Billion Won Through Settlement of Trust Real Estate Tax Arrears

Gyeonggi Province collected 27.8 billion won in delinquent local taxes this year through its 'Trust Property Local Tax Collection Program.'

To address the recurring issue of property tax delinquencies on trust real estate, Gyeonggi Province first analyzed trust property data between January and February of this year and designated 15,457 cases as targets for collection. By October, the province had secured claims on 7,882 cases through seizure and the designation of material tax liability, and put 2,051 cases up for public auction.

Trust property refers to assets entrusted by a real estate owner (trustor) to a professional management institution (trust company). In these cases, the obligation to pay taxes on the trust property remains with the trustor. However, as trustors often delay tax payments, cases of prolonged delinquency have repeatedly occurred.

To resolve this, each city and county has designated trust companies as material taxpayers, requiring them to pay taxes together with the trustor. This means that for entrusted properties, the trust company, as the registered owner, is also responsible for tax payment, making this a key measure in addressing trust property tax delinquencies.

Gyeonggi Provincial Government

If the trust company still failed to pay after being designated as a material taxpayer, the authorities encouraged voluntary payment by issuing public auction notices. In cases where payment was delayed without valid reason, public auction procedures were initiated immediately. The total amount collected through these enforcement and delinquency measures was 27.82 billion won.

Gyeonggi Province took strong collection actions against those who delayed payment for an extended period despite having the ability to pay, or who showed signs of tax evasion. At the same time, partial payments were allowed and auctions deferred for delinquent taxpayers who faced temporary financial difficulties.

No Seungho, Director of Tax Justice at Gyeonggi Province, stated, "The public auction of real estate due to local tax delinquency is not just about collecting overdue taxes; it is an important process that creates a virtuous tax structure by transferring the assets of chronic delinquents to diligent taxpayers." He added, "Gyeonggi Province is committed to on-site collection with the goal of zero tax delinquencies and is focusing all administrative resources on establishing a culture of responsible tax payment."

Trust property auctions are conducted through the Korea Asset Management Corporation (KAMCO), and in addition, about 500 properties owned by general delinquent taxpayers are also currently being auctioned.

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