Gyeonggi Province imposed fines totaling 2.36 billion KRW on 739 individuals who underreported real estate transaction prices or illegally gifted real estate to their children in order to pay less capital gains tax.
The province announced on the 30th that during January and February this year, it detected 393 violations of the Real Estate Transaction Reporting Act through notifications from the Korea Real Estate Board's ongoing monitoring, investigations by local city, county, and district offices, and voluntary reports.
Among the types of violations, failure to report or delayed reporting was the most common with 308 cases. This was followed by false reporting of transaction prices (up/down contracts) and false reporting of contract dates, each with 37 cases, and failure to submit or false submission of documents with 11 cases. In addition to imposing fines, 99 suspected cases of capital gains tax and gift tax evasion were reported to the tax offices under the jurisdiction of the respective city, county, or district for tax investigations.
Last year, the province detected 3,677 violations of real estate transaction reporting and imposed fines totaling 11.69 billion KRW on 6,598 individuals. Furthermore, 1,163 suspected cases of tax evasion were reported to the relevant tax offices.
The province also offers a reward of up to 10 million KRW to those who report illegal real estate transactions. Eligible reports include false reporting of real estate transaction prices and false reports without monetary transactions. Reports can be made to the real estate management departments of the city, county, or district where the property involved in the violation is located.
A provincial official stated, "We will strictly respond to violations of real estate transaction reporting by imposing thorough fines and notifying tax authorities to establish a fair and transparent transaction order," adding, "We plan to reduce fines for those who voluntarily report."
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