Busan City, Realizing Fair Taxation... Intensive Investigation to Uncover Local Tax Evasion and Omitted Tax Sources

Selection and Investigation of 18 Key Focus Areas

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Busan City is promoting a comprehensive investigation to uncover concealed and omitted tax bases such as luxury properties.

On the afternoon of the 6th, the city held a meeting related to the '2023 Comprehensive Tax Administration Operation Plan,' chaired by Kim Hyo-kyung, Busan City Finance Officer, with heads of tax departments from districts and counties attending, to share plans for a comprehensive investigation of local tax evasion areas and discuss related measures.

Busan City Hall.

This meeting was organized to strictly respond to intelligent and irregular tax evasion acts that go against a fair society and antisocial tax evasion behaviors that cause a sense of loss among the public, amid prolonged COVID-19 and complex economic crises such as the three highs in the economy, which have made the livelihood economy difficult.

The city plans to collaborate with districts and counties to seek ways to strengthen the discovery of concealed and omitted tax bases in the blind spots of local tax base management and to manage vulnerable local tax areas through a comprehensive investigation.

This comprehensive investigation has selected 18 areas as key tasks, including luxury properties subject to local tax surcharges (villas, high-end houses, golf courses, etc.), high-end entertainment venues (nightclubs, etc.), deemed acquisition (major shareholders of unlisted corporations and land category changes), illicit housing acquisitions (houses exempt from local tax surcharges on paid acquisition, etc.), illegal buildings, insufficient post-management of tax-exempt or reduced items, and areas requiring tax base management inspection due to amendments in local tax laws. The investigation will focus on whether local taxes are being properly levied.

The comprehensive investigation period for vulnerable local tax areas is set from February to December, with phased investigations conducted according to the schedule. However, the priority investigation targets and timing may vary depending on the self-plans suited to the circumstances of each district and county.

Kim Hyo-kyung, the city finance officer, said, “We thank the citizens who have faithfully fulfilled their tax obligations despite difficult economic conditions including COVID-19. Through this comprehensive investigation of vulnerable areas, we will uncover concealed and omitted tax bases and focus investigative efforts on unfair areas such as luxury properties and illicit housing acquisitions to realize fair taxation.”