Biz/Finance
 
    
  
+Login    +Register    +Find Id / Pw Home  l  Archives  l  Learning Times  |  Sitemap  |  Subscription  l  Media Kit  l  PDF
    Home > Newszone > Biz/Finance >
  Nation
  Biz/Finance
    Photo News  
    Meet The CEO  
    Korea: From Rags to Riches  
    Green Finance  
    Global Brand of Korea  
    Expat Banking  
    The Rise and Fall of Business Empires  
    Economic Essay Contest  
    Industry Report  
    Business Report  
    Financial Report  
    Premium Brands  
    Stock Market Watch  
  Technology
  Arts & Living
  Sports
  Opinion
  Community
  Special
     
  The Learning Times
     Editorial Listening
     Phone English
     Dear Abby
     Domestic News
     Foreign News
     Screen English
     Live English in Drama
     Discovery Education  >
     Ancient Idiom  
     iBT Writing  
     English Writing I
     English Writing II  
     English Grammar
     Grasping Vocab
     iBT Vocab
     Korean Language  
     
     Junior Writing
     Junior Reading
     Junior Reporter
     
 
   09-25-2009 17:37 여성 음성 듣기 남성 음성 듣기
Private Institutes Are Hotbed of Tax Evasion

By Yoon Ja-young
Staff Reporter

The National Tax Service (NTS) has launched a tax probe on 150 high-income self-employed people, including huge private teaching institute owners, famous lecturers on the private education scene and professionals such as lawyers and doctors.

In a previous probe on 130 people, the tax agency found that they were omitting nearly half of their income when filing income taxes.

The tax agency said that it was looking into 84 people within the private education industry and 66 high-income professionals suspected of evading income tax.

``We selected those highly suspected of evading taxes, based on their tax filings and transactions during the past three years,'' said a spokesman at the NTS.

While the market here is growing explosively, the private education scene has been a hotbed of tax evasion. Private institutes often induce parents to pay in cash so that they can leave out income. Some lecturers make big money through tutoring, but they rarely pay taxes.

Lawyers also often evade taxes, refusing to get credit cards, and omitting bonuses they get for winning a lawsuit.

According to the tax agency, an investigation in May found that high-income self-employed people omitted 40.9 percent of their income on average when filing tax returns. It looked into 130 suspicious people during that probe, who said they had earned 294.8 billion won when they had actually garnered 516 billion won.

The private education industry and wedding halls were the top tax evaders, having omitted an average 46.7 percent of their income when filing for taxes.

A cram school in Gyeonggi Province, for example, left out 2.6 billion won of income by inducing students to pay in cash. A dentist omitted 1.4 billion won in income by receiving cash for tooth implant surgery.

The tax agency has carried out 10 special tax probes on the high-income self-employed since 2005.

chizpizza@koreatimes.co.kr

Reader's Comments
Notice From KT Website Manager
Bad language will not be tolerated. All comments considered discriminatory against race or sex, or which are considered offensive against certain people, will be eliminated by the manager. Violators will be deprived of their membership.
Please stay on topic.
Managerial regulations
Back Top