Gyeonggi-do Selects 9 Outstanding Cases in Non-Tax Revenue Research Presentation Contest Including Anyang and Anseong

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province held the '2021 Non-Tax Revenue Research Presentation Contest' targeting local governments within the province to encourage the expansion of non-tax revenue and selected 9 cases as excellent examples.

The Non-Tax Revenue Research Presentation Contest has been implemented by Gyeonggi Province since 1997 to expand local finances and enhance the work capabilities of responsible public officials by developing and sharing excellent techniques for discovering non-tax revenue.

Local non-tax revenue refers to self-generated income other than local taxes such as acquisition tax and registration tax within local government financial income. This includes income imposed and collected according to laws for administrative purposes such as usage fees, commissions, fines, and penalties.

From the 2nd to the 6th, the province selected 9 projects as presentation candidates through a preliminary written review, and on the 16th, held a presentation evaluation via video conference between the province and city/county offices at the Gyeonggi Provincial Government building to select excellent cases.

The excellent cases are ▲Grand Prize (Gyeonggi Province, Anyang City, Anseong City) ▲Excellence Award (Goyang City, Osan City, Gyeonggi Province) ▲Encouragement Award (Hanam City, Anyang City, Pocheon City), totaling 9 cases.

Among the grand prize cases, Gyeonggi Province’s 'Nationwide Apartment Pre-sale Rights Seizure Using Real Estate Transaction Information' utilizes real estate transaction report information from the Ministry of Land, Infrastructure and Transport to secure and seize pre-sale rights nationwide within a short period.

Unlike real estate ownership, pre-sale rights (move-in rights), which have no public registration system, are difficult to identify before registration even if transactions occur, creating a blind spot in delinquent tax enforcement. Until now, local governments spent considerable time acquiring pre-sale rights information one by one from individual developers. Gyeonggi Province’s policy has been recognized for its potential nationwide expansion, being adopted in Yangsan City, Gyeongnam Province, and Asan City, Chungnam Province.

Anyang City’s 'I Take the Abandoned Scrap Metal: Asset-less Delinquent Tax Collection' is a case of persistently tracking high-amount, long-term delinquent taxpayers who hid assets under their spouse’s name while operating construction businesses. Despite 82 payment reminders over 11 years due to the taxpayer’s claim of having no assets, and a delinquent amount of 243 million KRW unpaid, Anyang City seized scrap metal worth 60 million KRW stored at the taxpayer’s business site. This was the first case nationwide to seize movable property solely through scrap metal and was highly evaluated as an example of proactive administration.

Anseong City’s 'Promotion of Delinquent Amount Settlement for Completed Vehicle Auctions' involved administrative agencies assisting delinquent taxpayers with administrative procedures to reduce delinquent amounts and complaints. To reduce non-tax revenue fines (for lack of insurance, delayed inspections) imposed during auctions, the delinquent taxpayer must personally obtain and submit a 'Vehicle Delivery Execution Report' from the court. However, bankrupt delinquent taxpayers find it difficult to pay attention to the reduction process, so Anseong City filtered the subjects through the local tax system and directly obtained the 'Vehicle Delivery Execution Report,' settling 84 cases totaling about 68 million KRW in delinquent amounts.

The province plans to disseminate the 9 excellent cases to cities and counties within the province and submit them to the 'Local Finance Excellent Case Presentation Contest' hosted by the Ministry of the Interior and Safety.

Kim Min-kyung, head of the Tax Justice Division of the province, emphasized, "The excellent cases from this contest are examples that can be expanded to other local governments. Gyeonggi Province will lead efforts to expand local finances through discovering, disseminating, and sharing excellent cases."