NTS to Stop Tax Probe on Small Firms
By Yoon Ja-young
Staff Reporter
The National Tax Service (NTS) will stop regular tax probes of small and medium-sized businesses until the financial market stabilizes.
The National Tax Commissioner Han Sang-yool said in a meeting with small and medium-sized business CEOs Wednesday that there will be no regular tax investigation for the time being, as many businesses are being shaken by the global financial crisis and soaring value of the dollar.
The measure will immediately benefit businesses with annual sales less than 500 billion won. Large businesses could also have tax probes delayed if they are facing negative circumstances.
The tax agency picked 2,700 corporations for this year's regular tax investigations last month and had already started probing some of them.
The commissioner added that even taxpayers who got regular tax audit notices can request a delay. The tax probes already started will be completed as soon as possible.
``We will take as many tax measures as possible to support businesses suffering from global financial trouble, by delaying tax collection while giving back tax refunds as soon as possible,'' Han said.
National tax law allows the tax agency to defer tax collection for up to nine months if the business is in a serious difficult situation.
``The delay of the regular tax probe will help businesses concentrate on management and overcome economic difficulties,'' the commissioner explained.
He said small businesses damaged by losses from currency derivative products like knock-in knock-out (KIKO) could get their tax payment postponed.
However, probes on businesses that evidently evaded taxes will continue, according to Han. He added that tax probes would be intensified on overseas spending of income from irregular foreign exchange transactions and tax evasion, or issuance of bogus receipts.
``The tax probe exemption is positive news for firms directly hit by the financial crisis,'' said Korea Venture Industry Association President Seo Seung-mo.