[Exclusive] Korea seeks US help to combat overseas tax evasion

The Korea Times

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ExclusiveKorea seeks US help to combat overseas tax evasion

Posted : 2011-01-19 18:14

Updated : 2011-01-19 18:14

Victor Song, chief of U.S. Internal Revenue Service Criminal Investigation (IRS-CI), will visit Seoul next week to discuss cooperation with Korean tax officials in cracking down on offshore tax evasion.

Victor Song
Chief of IRS-CI

By Kim Jae-won

Victor Song, chief of U.S. Internal Revenue Service Criminal Investigation (IRS-CI), will visit Seoul next week to discuss cooperation with Korean tax officials in cracking down on offshore tax evasion.

According to a source in the National Tax Service (NTS), Song’s visit follows the NTS announcing its intention to track unreported capital transfers involving companies and individuals.

The NTS has vowed to increase tax revenue by 1 trillion won by cracking down on overseas tax evasion.

Song is scheduled to meet two assistant commissioners, who are responsible for executing overseas initiatives, a high-ranking official of the agency said Wednesday on condition of anonymity.

“The two assistant commissioners are responsible for international taxation and investigation,” said the official. Park Yun-joon is in charge of the International Taxation Bureau, while Kim Yeon-keun is head of the investigation division.

The visit comes after the NTS unveiled its plan to get tough with large businesses and affluent individuals who try to evade paying taxes on overseas funds.

The U.S. is one of the most preferred destinations where Koreans’ unaccounted-for money ends up.

The NTS signed a Simultaneous Criminal Investigation Program (SCIP) agreement with the IRS-CI in August 2010 to jointly investigate tax criminals by sharing information on suspects and their associated parties engaging in economic activities in both Korea and the U.S.

Song, the operations head of the SCIP, has full access to a wide range of financial information, thus his visit is expected to help the NTS better detect and track down criminal cases including the embezzlement of corporate funds using U.S.-based vehicles.

The NTS detected hundreds of overseas tax evasion cases last year valued at 600 billion won — it imposed 300 billion won in punitive and back taxes.

Song, a Korean American, joined the IRS in 1981 and became a special agent in 1983. The son of Korean immigrants has been in charge of numerous IRS-CI offices before becoming a senior executive in 2004.

He became deputy chief in 2007, took the helm of the division in January 2010. Song has a bachelor’s degree in communications from the University of Hawaii.

Conglomerates and rich individuals have been criticized for dodging taxes using overseas affiliates or accounts in foreign nations, respectively.

Hyosung Group is one example. The group has been under investigation by the prosecution since 2009 over allegations that it created a slush fund through subsidiaries in the United States. Cho Hyun-joon, president of the group and first son of group Chairman Cho Suck-rai, allegedly used some of the money to purchase a luxury house in California.

[단독] 한국, 역외탈세와의 전쟁에 미국의 도움을 요청하다

미국 IRS 조세범죄조사국의 수장인 빅터 송이 다음주 서울을 방문해 국세청 고위 공무원들과 역외탈세 근절방안에 대한 공조를 논의할 계획이라고 국세청의 한 관계자가 말했다.

송 국장의 방문은 국세청이 국내 기업과 개인의 재산 국외반출에 대해 엄정하게 대처할 것이라고 최근에 한 발표에 뒤따른 것이어서 그 귀추가 주목된다.

국세청은 역외탈세에 대한 감독을 강화함으로써 약 1조원에 가까운 세원을 확보하겠다고 다짐한 바 있다.

국세청 고위관계자는 익명을 전제로, 송 국장이 역외탈세 업무를 담당하고 있는 두 명의 국세청 국장과 면담이 예정돼 있다고 전했다.

“송 국장이 국세청 국제조세관리관과 조사국장을 만날 예정입니다,”고 그 관계자가 말했다.

국세청의 국제조세분야는 박윤준 국제조세관리관이 담담하고 있고, 조사국은 김연근 국장이 관할하고 있다.

송씨는 한국계 미국인으로 1981년 IRS에서 근무를 시작해 1983년에 특별조사요원이 됐다. 2004년에 간부로 승진했고, 2007년에 조세범죄조사국 부국장이 됐다. 이후 2010년 1월부터 국장으로 근무하고 있다.

shosta@koreatimes.co.kr