Yangsan City Actively Promotes Investigation of Accounting Books of High-Value Delinquent Corporations

Yangsan City in Gyeongnam is intensifying its efforts to collect overdue taxes by strengthening the tracking of vehicles owned by high-value delinquent taxpayers and closed corporations. Recently, the city has also conducted investigations into the accounting books of corporations with large tax arrears, taking collection actions on loan receivables and focusing all efforts on recovering overdue taxes.

Public Auction of Vehicles with High Unpaid Taxes in Progress.

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Recently, while investigating the assets of a corporation with over 220 million KRW in tax arrears, Yangsan City discovered that multiple real estate properties owned by the corporation had been transferred to third parties. Through on-site and accounting book investigations into the flow of sales proceeds, the city identified the corporation's accounts receivable and loan receivables, and immediately issued seizure notices to both the delinquent corporation and third-party debtors to enforce collection.

The city also plans to conduct additional investigations, with the cooperation of the tax office, to determine whether there are majority shareholders. A majority shareholder is defined as a person who owns more than 50% of a corporation's issued shares. If applicable, the majority shareholder becomes secondarily liable for the corporation's tax arrears in proportion to their ownership stake.

Meanwhile, Yangsan City is actively pursuing the tracking of vehicles owned by high-value delinquent taxpayers and closed corporations. In September, the city tracked and towed three such vehicles, which are scheduled to be auctioned.

If a high-value delinquent vehicle is in use by the taxpayer, but the taxpayer does not occupy the registered residence or address, the city verifies the vehicle insurance policy to track the vehicle's location through the policyholder's address. If a delinquent vehicle is found during searches of residences or business premises, the city seizes the license plate, attaches a wheel lock and a seal, and then takes possession of the vehicle to collect overdue taxes through public auction.

An official from Yangsan City stated, "We will establish a sound tax payment culture and fair tax administration by strengthening on-site collection activities such as business and home searches of high-value delinquent taxpayers, tracking and seizing high-value delinquent vehicles, and persistently pursuing assets to collect overdue taxes."

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