Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Korea, Japan to enhance cooperation to crack down on tax dodgers
National Tax Service (NTS) Commissioner Kang Min-su, left, poses with Japan’s National Tax Agency Commissioner Tatsuo Oku during a meeting in Tokyo, Tuesday. Courtesy of NTS
By Yi Whan-woo
Top tax officials from Korea and Japan agreed to enhance cooperation in cracking down on delinquent taxpayers who hide assets overseas, the National Tax Service (NTS) said Wednesday.
The NTS said the agreement between Commissioner Kang Min-su and Japan’s National Tax Agency Commissioner Tatsuo Oku was made during Kang’s visit to Tokyo on Tuesday, as the two seek to take cooperation to a higher level on the 60th anniversary of formal diplomatic ties this year.
“The two commissioners acknowledged that tax authorities face tough challenges in easing taxpayers’ burdens and ensuring stable fiscal revenues at the same time while grappling with economic uncertainties that make collecting taxes tricky,” the agency said.
It also said Kang and Oku had in-depth discussions on Korea’s asset tracking investigations against wealthy individuals who are habitually delinquent in tax payments. They also discussed Japan’s tax policy on new types of financial assets.
“To implement their policies more effectively and uphold tax justice, the two sides agreed to respond more resolutely to tax delinquents who conceal assets overseas,” the NTS added.
Other topics included strategies for tax administration, mutual agreement to avoid double taxation and measures to strengthen formation exchange.
Korea and Japan have held a regular meeting between their top tax officials since 1990. This year’s gathering, however, was more significant as the two neighbors’ relations marked another milestone, according to the NTS.
“The NTS will continue to build a cooperative framework on tax administration with individual countries, and more broadly, form a closer multinational cooperative network,” it said.
It explained such “active tax diplomacy” is expected to help Korean nationals and businesses.