Police Decide Not to Prosecute 'Samzzumzzum' on Charges of Unqualified Tax Agency

Decision Not to Prosecute on Charges of Unqualified Tax Agency and Tax Agent Introduction Mediation
Reported by Korea Association of Tax Accountants and Tax Accountant Examination Association

[Asia Economy Reporter Jang Sehee] The police have decided not to prosecute after investigating allegations that the tax service platform SamzzumSam engaged in unqualified tax representation.

According to the police on the 18th, the Gangnam Police Station in Seoul concluded there was no evidence against the CEO of SamzzumSam and some partner tax accountants who were accused the day before of unqualified tax representation, tax representation referral mediation, and unqualified tax representation advertising, and decided not to prosecute.

SamzzumSam is operated by Jarvis & Villains and provides comprehensive income tax filing and refund assistance services.

The police viewed that in the case of the self-refund service, since individuals use the platform themselves, it does not constitute tax representation. It was confirmed that currently, partner tax accountants with tax accountant qualifications are performing tax representation for SamzzumSam.

They also found it difficult to acknowledge the referral mediation charge. Since the tax accountants who receive the tax representation service take the entire service fee, it was judged difficult to recognize any remuneration for SamzzumSam. According to the Tax Accountant Act, receiving remuneration is punishable as mediation.

The advertising charge was also not recognized. Considering court rulings and other factors comprehensively, the police judged it difficult to determine that the advertisement in question was promoting unqualified tax representation.

The Korea Association of Tax Accountants and the Tax Accountant Examination Association reported to the police in March last year, alleging that SamzzumSam performed illegal tax representation work without qualifications under the Tax Accountant Act and engaged in related advertising activities.