Gyeonggi-do to Seize Luxury Bags Purchased by Delinquents at Airport When Traveling Abroad

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[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will seize luxury goods or overseas direct purchase items carried by high-amount and habitual local tax delinquents at the airport immediately upon their return from overseas travel starting in June.

On the 21st, Gyeonggi Province announced that, according to the revision of the 'Local Tax Collection Act,' it plans to entrust the Korea Customs Service with the collection of delinquent taxes on goods imported by high-amount and habitual local tax delinquents.

Once the province entrusts the collection of delinquent taxes, the Korea Customs Service will directly seize high-value items carried by delinquents at the inspection site upon their arrival, and will withhold customs clearance and seize general imported goods such as home appliances and clothing purchased through overseas direct purchases.

If the delinquent tax is not paid even after seizure, the Korea Customs Service will request public auction of high-value items to specialized sales agencies such as the Korea Asset Management Corporation, and will directly auction small-value items.

The entrustment target is those whose names have been disclosed for failing to pay local taxes of 10 million won or more for over one year from the delinquency date, according to the 'Local Tax Collection Act.' This year, the province plans to entrust the Korea Customs Service with the collection of delinquent taxes for those whose names were disclosed last year and this year.

The items subject to seizure include ▲ luxury bags, golf clubs, and other carry-on items purchased overseas and brought into the country ▲ jewelry carried out of the country and brought back in upon re-entry ▲ large-scale general imported goods purchased by corporations, etc. ▲ home appliances and clothing purchased through overseas direct purchases.

Accordingly, on the 21st, the province sent advance notice letters of entrustment to 4,135 individuals and 1,464 corporations who are high-amount and habitual delinquents in the province. The province grants a one-month payment period until the 31st of next month. Their total delinquent tax amounts to 281.1 billion won, including 200.4 billion won for individuals and 80.7 billion won for corporations.

If the delinquent tax is not paid during this period, those whose names were disclosed as high-amount and habitual delinquents last year will be entrusted to the Korea Customs Service for collection in June, and those scheduled for name disclosure this year will be entrusted after the disclosure date of November 16.

Choi Won-sam, head of the Tax Justice Division of the province, emphasized, "The fact that delinquents get caught in customs inspections upon entering the country will itself act as a significant psychological pressure. We will cooperate with the Korea Customs Service to actively enforce collection on import goods of delinquents to establish a fair tax payment culture and realize tax justice."

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