Expansion of Big Data and Mobile Taxpayer Services... Strengthening Support for the People's Economy
On the morning of the 29th, at the National Tax Service in Government Sejong 2 Complex, participants including Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (fifth from the left), and Kim Hyun-joon, Commissioner of the National Tax Service, are saluting the national flag during the 2020 National Tax Office Chiefs Meeting.
[Asia Economy Reporter Kwangho Lee] The National Tax Service (NTS) has set its sights on real estate speculation this year. This move is interpreted as a proactive response to President Moon Jae-in's policy stance for this year, which declared a "war on real estate speculation." The NTS also plans to crack down strongly on illicit succession of management rights within large conglomerate family owners, preferential treatment of former officials, and high-income professionals and expensive private education. It also showed a willingness to reduce the total number of investigations to revitalize the livelihood economy.
On the 29th, the NTS held the 2020 nationwide tax office chiefs meeting at the Government Complex Sejong, chaired by NTS Commissioner Kim Hyun-joon, where it finalized and announced the first half 'National Tax Administration Operation Plan' with these contents. A total of 313 tax office chiefs from across the country attended the meeting.
Commissioner Kim, who presided over the meeting, emphasized, "We will strictly respond to intelligent tax evasion and delinquency that undermine the realization of a fair society, such as tracking and taxing unearned income through real estate to the end," adding, "In particular, we will strictly respond to illicit gifts related to high-priced housing acquisition, tax evasion by multi-homeowners and rental businesses."
The NTS will first conduct a full analysis of the sources of funds for acquiring high-priced housing using financing plans and other documents, and thoroughly investigate suspicions of tax evasion such as disguised gifts. Especially, it will manage the entire process of debt repayment related to high-priced housing acquisition post-factum and focus on analyzing the sources of funds for large deposit tenants. It also plans to investigate suspicions of tax evasion by real estate corporations established to avoid combined taxation and underreport rental income through the use of borrowed-name accounts by multi-homeowners.
Alongside this, the NTS intends to strictly punish illicit tax evasion such as the operation of borrowed-name stocks by large conglomerates and their family owners, unfair support among affiliates, unfair mergers, and management succession through indirect capital transactions. It plans to conduct a full inspection of false reporting suspicions related to subcontracting and preferential treatment to eradicate private profit-seeking acts that hinder fair competition. Additionally, it will expand regular verification of property changes and actively utilize mortgage lien data to closely examine the inheritance of wealth among high-net-worth individuals and young people.
Furthermore, the NTS will strengthen tax audits in professional fields such as former officials’ preferential treatment and medical institutions that earn huge incomes by abusing superior status and privileges but fail to report faithfully, and actively respond to livelihood-damaging tax evasion in areas closely related to ordinary citizens’ lives, such as expensive private education, entrance exam consulting, and illegal lending businesses.
Moreover, the NTS will reduce the total number of investigations and expand simplified investigations, excluding small-scale corporations that have faithfully fulfilled their tax cooperation obligations from irregular investigations in principle. It will also faithfully implement tax burden reduction and tax administration support measures for self-employed and small business owners extended until the end of this year to support economic revitalization.
In addition, the NTS will support voluntary and faithful reporting through big data analysis and full expansion of mobile Hometax, and operate exclusive airport business centers for model taxpayers and a prior consultation system for investigation timing. It will also promote the discovery and support of small businesses through the newly established 'Tax Administration Support Promotion Team' at tax offices and regional tax offices.
Commissioner Kim added, "We will actively implement tax administration support for self-employed and small business owners so that it can be felt on the ground," and "Through the spread of proactive administration, a new public service paradigm, and enhancement of the integrity of national tax officials, we will realize national tax administration that the public sympathizes with and trusts."
Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki urged in his congratulatory remarks, "Please do your best to ensure stable tax revenue budget procurement, strict response to tax evasion and delinquency, and support inclusive and innovative growth at the level of national tax administration."
The nationwide tax office chiefs meeting is held twice a year by the NTS.
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