"Tax Audit Exemption and Deferral for Small and Diligent Enterprises"
Ulsan City collected 8.407 billion KRW in evaded and concealed local taxes through tax audits on corporations last year.
On the 15th, Ulsan City announced that this amount increased by 1.783 billion KRW (27%) compared to 6.624 billion KRW in 2022.
The tax audits were conducted from March to December last year, targeting 651 corporations in the Ulsan area. Among them, 339 corporations were audited through regular tax audits, resulting in the collection of 6.491 billion KRW, and 312 corporations in vulnerable sectors such as regional housing cooperatives were audited, collecting 1.916 billion KRW.
Major cases of additional tax collection included acquisition costs of land shares related to regional housing cooperative development projects, installation costs of infrastructure for large-scale housing complexes, nationwide apportionment errors in local income tax on corporate tax, deemed acquisition among major shareholders, and land category changes.
This year, Ulsan City plans to defer tax audits for small and sincere businesses to help recover the local economy amid global uncertainties such as the Ukraine war and a downturn in the construction industry. Additionally, for companies selected for regular tax audits, the city will provide prior notice and incorporate corporate opinions on audit schedules and methods as much as possible to conduct considerate audit activities.
Furthermore, Ulsan City will produce and distribute customized local tax practical manuals focusing on recurring cases of additional tax collection to corporations annually, and will actively provide consulting-oriented tax guidance to encourage sincere reporting and payment.
An official from Ulsan City stated, “In cooperation with district offices, we will collect data on omitted tax sources, conduct detailed reviews of corporate accounting tax data, and perform on-site investigations concurrently. Through regular tax audits and partial audits in vulnerable sectors, we will strive to prevent tax evasion and realize tax justice.”
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