By Kang Shin-who, Kwon Mee-yoo
Staff Reporters

ETS Korea, a branch of the American TOEFL provider, recently hosted a seminar in Seoul for personnel involved in the test's administration.

Test operators and supervisors took part in last Friday's workshop ― "2009 TOEFL iBT CTAS Seminar" ― at the Shilla Hotel, downtown Seoul. CTAS is short for Certified Test Administration Site.

How actively the Korean branch of the nonprofit organization is involved in operating and promoting the English proficiency test is seen as key criteria for Korean tax authorities in deciding whether to tax the test organizer on test fees to the tune of billions of won.

The U.S.-based test maker has not paid taxes on TOEFL test fees in Korea, despite opening a branch office here. Tax authorities are checking whether this makes them liable to taxation in the country.

By nation, Korea has the largest number of TOEFL test takers, with their annual number reaching more than 100,000.

"It (hosting an operation seminar) could be an important fact proving that ETS Korea is dealing with operation of the TOEFL test. We are still collecting information about (ETS') Korean branch and reviewing it over the tax issues," a tax official said on condition of anonymity,

An official from ETS Korea last month told The Korea Times that they were organizing the seminar to improve the handling of TOEFL tests, but declined to comment when asked Monday for confirmation.

In an e-mail to The Korea Times last week, ETS said its Korean branch was an agent of ETS Global BV, an independent company separate from its headquarters in the U.S.

"(ETS Korea) is not an agent of ETS and the ETS Global BV branch office in Korea only undertakes marketing and promotion and does not perform or participate in any operational aspects of TOEFL. Still, the ETS Global BV Korea branch is taxable and pays all applicable taxes to the Korean government," it said.

However, Jennifer Brown, executive director from the global division at ETS, indicated on the sidelines of Friday's event that the organization will pay taxes if Korean tax authorities require them to do so, saying, "ETS obeys all Korean laws."

ETS' Web site says that ETS Global BV is "a wholly owned subsidiary" and "the international arm of ETS that brings ETS expertise to educational and business communities around the world in Europe, South America, Canada, China, Korea, India and the Middle East."

The company deals with "English-language learning products and services, training and technical assistance, design, development and delivery of large-scale assessments, test design and delivery and consulting services and non-standard solution."

kswho@koreatimes.co.kr
meeyoo@koreatimes.co.kr