By Kim Jae-won
The nation’s tax agency Thursday started its investigation into 151 suspected income tax dodgers, most of whom are high earners.
The National Tax Service (NTS) said lawyers, accountants, doctors, and owners of bars and private education institutions were under investigation.
“We are seeking to find hidden taxation sources and this is part of the plan,” said Kim Yeon-keun, assistant commissioner for tax investigation at the NTS in a news conference. “Professionals still underreport their incomes.”
Among the 151, 26 were doctors while lawyers, accountants and architects accounted for 31.
Doctors are suspected of asking their patients to pay fees in cash so as not to keep the money off their books, the NTS said. A total of 22 private learning institute or “hagwon” lecturers ― who also prefer cash payments ― were on the list.
The NTS investigated 451 income tax evasion suspects last year, and fined them 203 billion won, or an average of 450 million won per person.
The tax agency released some examples of tax evasion cases.
A lawyer with the family name Lee did not report 600 million won in income last year. The NTS found out, and imposed a fine and back taxes of 300 million won.
A famous lecturer, identified by his family name Kim, earned 5 billion won last year. She only reported 3 billion won to the tax office.
The lecturer also did not report 400 million won she earned by selling her books. She must pay 1.1 billion won in back taxes and fines.
The NTS said that it will also crack down on illegal inheritances through stock trade and embezzlement of corporate assets by company executives. “We will concentrate on embezzlement,” Kim said.
The tax agency said that it will crackdown on market-distorting activities, loan sharks and other areas that could hurt the livelihood of low-income citizens. Offshore tax evasion by businesses will also be put under increased scrutiny this year, the NTS said.