Chasing Defaulters to the End... Yeongdeungpo-gu Conducts Full Investigation of Second-Tier Financial Sector Investment Funds

‘Second Financial Sector Savings, Deposits, and Investment Fund Full Survey’ Targeting Local Tax Delinquents... First Among Autonomous Districts
Resolving Delinquency Blind Spots with Full Survey of Hard-to-Seize Second Financial Sector Investment Funds
Post-Survey, Sending Seizure Notices to Encourage Voluntary Payment, Followed by Seizure and Collection Procedures

Yeongdeungpo-gu (District Mayor Choi Ho-kwon) announced that it will proceed with seizure and collection procedures based on a full investigation of savings, deposits, and equity contributions in the secondary financial sector of about 1,000 delinquent taxpayers to collect local tax arrears and realize tax justice.

The purpose is to thoroughly track and collect from chronic delinquent taxpayers who neglect their tax obligations despite having the ability to pay, and to implement strict measures according to law and principles to establish a sound taxpaying culture.

The "Full Investigation of Savings, Deposits, and Equity Contributions in the Secondary Financial Sector" was first attempted within Seoul’s autonomous districts because delinquent taxpayers use the secondary financial sector to avoid asset seizure. Unlike the primary financial sector, the secondary financial sector has been identified as a blind spot for delinquent tax collection since immediate seizure through the "Electronic Deposit Seizure Service" is difficult.

First, since last month, the district requested inquiries into the status of equity contributions and other holdings from the secondary financial sector for delinquent taxpayers residing in the area with local tax arrears of 1 million KRW or more.

Subsequently, the district sent seizure warning notices to delinquent taxpayers based on the holdings of equity contributions received from the secondary financial sector, encouraging voluntary payment and installment payments.

For delinquent taxpayers who have not paid despite several notices, the district plans to request the secondary financial sector to freeze withdrawals of equity contributions and proceed with seizure and collection procedures. If the delinquent taxpayer refuses collection, the district will apply for proxy withdrawal from the cooperative, and if the debtor refuses to pay the collected amount, it will perfectly collect the arrears through lawsuits demanding the return of equity refund payments.

In this way, the district is leading efforts to eliminate blind spots in delinquent tax collection and eradicate tax evasion and arrears through diverse and proactive delinquent tax measures. Previously, the district recovered 2.2 billion KRW in resident tax through new tax investigation techniques based on public big data from the National Health Insurance Service, the National Tax Service, and others.

Choi Ho-kwon, Mayor of Yeongdeungpo-gu, stated, “Delinquent tax behavior severely damages the culture of sincere tax payment and causes a relative sense of deprivation among the majority of sincere taxpayers, making eradication urgent. We will focus our investigative capabilities on intentional delinquent taxpayers who conceal assets and fail to pay despite having the ability to pay, and will pursue collection to the end.”