Large delinquent taxpayers to be put behind bars
Lee Eung-hang, the National Tax Service's deputy commissioner, speaks about measures to toughen the crackdown on habitual and large tax delinquents, at the Seoul Government Complex, Wednesday. / Yonhap
By Kim Bo-eun
The government will implement a system under which habitual and large delinquent taxpayers who lead lavish lifestyles will be imprisoned for up to 30 days.
The National Tax Service (NTS) unveiled these measures in a briefing held Wednesday.
"We decided to toughen measures for habitual and large tax delinquents based on public outrage against them, as they lead lavish lifestyles as well as enjoy welfare benefits while hiding their assets," NTS Deputy Commissioner Lee Eun-hang told reporters in a briefing held at the Seoul Government Complex.
The measures intend to bring down the amount of delinquent taxes, as data showed in an annual audit last year that the delinquent tax from 2004 to 2017 amounted to 102.6 trillion won, only 1.1 percent of which was collected.
The government is seeking to imprison tax delinquents who have failed to pay taxes over three occasions, for whom a year has passed since tax delinquency occurred and for whom the total amount of delinquent taxes amounted to at least 100 million won.
In the case of a tax delinquent who owes more than 500 million won, the government will also be able to check the property holdings of their spouse and relatives who have previous records of hiding the delinquent's assets. Under current regulations this is difficult.
In addition, the government will revise regulations to close loopholes that enable tax delinquents to leave the country. Under current regulations, the travel ban only applies to those with passports, so a tax delinquent who did not have a passport can leave the country immediately after being issued a passport.
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Moreover, the government will seek to look into whether habitual tax delinquents with hidden assets are receiving welfare benefits. If they are, authorities may take back the benefits and impose criminal penalties.
The government will also exempt all tax delinquents from receiving state awards.
Those who fail to pay their vehicle tax over 10 occasions will face suspension of their driver's license. The government, meanwhile, will set up a system through which they can detect and protect those who are unable to pay taxes. This is will be applied to tax delinquencies that start occurring in 2020.
"In order to push forward with improvements in the system we will prepare revisions to related regulations by the end of the year and see that ministries cooperate so that the strengthened measures can swiftly go into effect,” Lee said.