Public Data Analysis and Workplace Survey from February to June → Identified 797 Missing Tax Sources in 173 Companies
Seogangseok, Songpa District Mayor: "Encouraging Honest Taxpayers by Recovering Evasion, Creating a Fair Tax Culture"
Songpa-gu (Mayor Seo Gang-seok) is making every effort to secure omitted tax sources to overcome this year's financial difficulties caused by decreased revenue.
Since February, after conducting public data analysis and a full survey of business sites, a total of 670 million KRW in omitted tax sources was recovered from 173 businesses in the area.
With the district's local tax revenue dropping by more than 17% compared to the previous year, the importance of effective revenue management is increasing day by day. Accordingly, the district has focused on the potential of big data, a new wave, and has begun to actively utilize public data in various administrative tasks such as discovering tax sources.
The omitted declarations found this time are the 'employee portion' and 'business office portion' of the resident tax for businesses, excluding the individual portion. The 'employee portion' is a tax imposed on workplaces where the average monthly total salary in the past year exceeds 150 million KRW. Businesses must report and pay 0.5% of the total salary amount by the 10th of the month following the month in which the salary was paid.
Also, the 'business office portion,' which individual and corporate businesses in the area report and pay every August, is a resident tax consisting of a basic tax amount ranging from 50,000 to 200,000 KRW plus an amount calculated based on the total floor area of buildings. Both tax items are imposed based on business declarations, so meticulous management is necessary.
This tax source discovery was conducted by cross-verifying open public data with the district's comprehensive tax data to identify unreported businesses. Big data from other administrative agencies, such as salary information from the National Health Insurance Service, withholding tax report details from the National Tax Service, and business site information from the Korea Industrial Promotion Association, were selectively compared and analyzed against the district’s full survey data, including building usage statements, property tax status, and local tax declaration status.
After identifying a total of 662 businesses suspected of failing to report resident tax, the district immediately launched a full survey. Efforts were also made to minimize taxpayer inconvenience by quickly excluding those found not applicable from unnecessary document submissions. Analyzing the submitted tax data, the district ultimately decided to tax 173 businesses across 797 cases, successfully recovering a total of 670 million KRW in omitted taxes.
Meanwhile, the number of corporations in the area, which was 24,000 in 2021, surpassed 30,000 this year, increasing the importance of fair and accurate taxation. The district plans to continue focusing on stable financial management by utilizing public data to plug tax revenue gaps and discover new tax sources.
Seo Gang-seok, Mayor of Songpa-gu, stated, “The use of big data in the tax field is a good example of proactive administration to ensure fairness in collection and expand local finances,” adding, “We will continue to make our best efforts in fair tax collection and discovering omitted tax sources to foster a tax culture where sincere taxpayers are respected.”
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