The declared amount of wealth held by Korean individuals and corporations in overseas financial accounts has jumped over the past year as the tax agency has stepped up surveillance on offshore tax evasion attempts, data showed Tuesday.
According to the data provided by the National Tax Service (NTS), Korean individuals and corporations owned a combined 18.6 trillion won ($16.38 billion) of wealth in overseas accounts as of June this year, up 61.8 percent from a year earlier.
The figures were based on voluntary reports by those who owned 1 billion won or more in deposits, stocks and other forms of assets in overseas accounts.
It is the second year the nation has enforced the voluntary report program, which was intended to reduce tax evasion using overseas financial accounts.
The data showed individuals declared a total of 2.1 trillion won in 1,059 accounts, up 115 percent from the amount reported a year earlier. Corporate entities held 16.5 trillion won in 4,890 accounts, a 57 percent growth over the same period.
In particular, the money held in Swiss financial accounts spiked over the past year. Individuals declared 100.3 billion won in Swiss accounts, up from 7.3 billion won a year earlier, the data showed.
The increase is in line with the government's crackdown efforts to tax avoidance attempts through secret overseas financial accounts.
In July, Korea agreed to revise its anti-double taxation pact with Switzerland in a way that can provide tax authorities with easier access to tax-related information.
"We will strengthen our ability to collect information and thoroughly analyze data related to overseas financial accounts to crack down on those who do not declare (their accounts)," an NTS official said. "We will trace to the end and impose taxes on hidden offshore wealth through tax investigation."
The NTS said it will keep confidential the identities of those who voluntarily declare their overseas accounts and minimize tax-related administrative interference for them, while imposing penalties on those who fail to do so and push for a tax audit if necessary. (Yonhap)