Gyeonggi-do Catches 2,216 People Depositing Money in Secondary Financial Institutions to Avoid Taxes

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has identified 2,216 high-amount delinquent taxpayers who tried to avoid tax seizure by placing their assets in secondary financial institutions such as Saemaeul Geumgo or credit unions.

Gyeonggi Province announced on the 5th that from May to September, it conducted a full investigation of deposits and savings at 1,165 branches of secondary financial institutions within the province for about 80,000 people who owed more than 1 million won in local taxes. As a result, it detected 6.6 billion won in financial assets held by 2,216 people (with delinquent amounts totaling 29 billion won) and seized all of them.

This is the second full investigation of secondary financial institutions following the one conducted in May last year. Unlike primary financial institutions, where delinquent taxes can be seized within a day or two through the 'Delinquent Taxpayer Deposit Seizure System,' secondary financial institutions have been pointed out as a blind spot for delinquent tax collection because it takes more than a month to seize assets.

In a key case, Mr. A, who lives in Seongnam City, had been delinquent on 1.1 million won in taxes including property tax since 2018, citing "financial difficulties." However, the investigation revealed that he had deposited 100 million won in a local Saemaeul Geumgo, and the province seized the entire deposit. Mr. A, who owed 1.1 million won, was found to have deposited several million won annually.

Mr. B, who lives in Namyangju, owed 46 million won but held deposits exceeding 200 million won at a local Nonghyup branch. Upon notification of the deposit seizure based on the investigation results, he immediately paid the delinquent amount.

The province plans to encourage voluntary payment from the delinquent taxpayers identified in this investigation and sequentially collect seized financial assets from those who fail to comply, in accordance with the Local Tax Collection Act. For some delinquent taxpayers experiencing financial difficulties, measures such as deferral of delinquent tax disposition, installment payments, and welfare linkage will also be implemented.

Ryu Young-yong, Director of the Tax Justice Division of the province, emphasized, "We will strongly collect delinquent taxes from chronic delinquent taxpayers and provide maximum support within the allowed system to those who are genuinely facing financial difficulties, striving to realize fair tax justice."