Do not go gentle into that good night, old age should burn and rave at close of day; Rage, rage against the dying of the light, though wise men at their end know dark is right, because their words had forked no lightning they, do not go gentle into that good night.
NTS to expand probe into offshore tax evasion
The National Tax Service's investigation bureau head Kim Myeong-joon speaks during a media briefing at the Sejong Government Complex, Wednesday. / Courtesy of National Tax Service
By Jhoo Dong-chan
By Jhoo Dong-chan
The National Tax Service (NTS) said Wednesday it will crack down further on local companies and wealthy individuals suspected of maintaining offshore accounts as a means to avoid paying taxes at home.
The nation's tax agency collected taxes worth 1.32 trillion won ($1.17 billion) from companies and individuals attempting to dodge taxes last year by investing in offshore accounts and businesses.
The agency has conducted audits twice this year to collect an additional 541 billion won. It has looked into 58 cases involving 65 companies and 28 individuals.
“The classic method of offshore tax evasion used to be by establishing paper companies in tax havens to transfer domestic assets out of the country. Now, it is getting more sophisticated,” the agency said in a press release.
“Our investigation found that a number of experts got involved in offshore tax evasion. Now, those who are dodging their taxes have been found not only transferring their assets abroad but also laundering their money by putting it into real estate or acquiring equities in foreign companies.”
The NTS has so far not just targeted conglomerates and their owner family members, but has expanded its investigation into groups with high spending patterns whose revenue sources are unclear.
“These companies and individuals started by not only establishing paper companies in tax havens but also utilizing them to invest in third countries,” the agency added.
“The NTS will closely cooperate with foreign authorities to beef up our monitoring.”
A well-known entertainment management company was also found to have tried to evade taxes, according to the NTS report.
The firm organized a concert abroad in trust with a local firm there, but did not report the revenue. Instead, it transferred the money to a Hong Kong-based paper company established by the company owner to evade taxes.
The NTS said it charged additional taxes against the owner of the firm while reporting the case with the prosecution.
In August, the tax agency said it will initiate an investigation into 360 people who are suspected of giving property to third persons, mostly their children, without paying the appropriate taxes.
The investigation includes 146 minors owning large amounts of financial assets.