Gyeonggi Province has identified 174 individuals who made false real estate reports and imposed fines totaling over 520 million KRW.
Gyeonggi Province announced on the 11th that from September to December last year, it conducted a special investigation into 1,731 suspected cases of false real estate reporting across 31 cities and counties within the province. As a result, 174 people who falsely reported real estate transactions to evade tax obligations were identified, and fines amounting to 524 million KRW were imposed.
The province classified suspicious cases of false reporting as including up/down contract reports, false contract date reports, sales between special relations (relatives), inability to verify transaction amounts, false reports without monetary transactions, and transactions suspected of being gifts based on funding plans.
The investigation revealed ▲4 individuals who made 'up contracts' by reporting higher transaction amounts than actual to manipulate market prices or increase mortgage loan limits ▲4 individuals who made 'down contracts,' a double contract where the contract price was reported lower than the actual transaction price to reduce capital gains tax ▲and 159 individuals who reported delayed or false contract dates, totaling 174 people identified.
Among the major cases, Mr. A reported selling land in Yangpyeong-gun to Mr. B for 500 million KRW in the actual transaction report. However, the investigation revealed that Mr. A underreported the transaction by 100 million KRW from the actual 600 million KRW to reduce capital gains tax. Accordingly, Gyeonggi Province imposed a total fine of 48 million KRW on both the seller and buyer.
Mr. C reported selling an apartment in Anyang-si for 500 million KRW, but it was found that the payment was made to an account owned by his child, leading to a report to the tax authorities for suspected gift tax evasion.
Meanwhile, although no suspicious points were found in transaction documents, Gyeonggi Province reported 375 cases to tax authorities for tax investigations where the real estate sellers and buyers were confirmed to be special relations such as family or relatives, or where transactions were reported at unreasonable prices compared to surrounding market prices.
By type, these included ▲165 cases of special relation sales ▲23 cases of suspicious transaction prices ▲39 cases where transaction amounts could not be verified ▲8 cases of payment in kind ▲and 140 cases of others (including suspected disguised gifts).
Ko Jung-guk, Director of the Land Information Division of Gyeonggi Province, stated, "We plan to continue special investigations into suspected false real estate transaction reports in the first half of this year to establish a fair and transparent transaction order," adding, "We plan to reduce fines for voluntary reporters."
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