Songpa-gu Criminally Charges 3 Local Income Tax Delinquents

Criminal Charges Filed Against 3 Employers for Unpaid Special Local Income Tax Withholding in October
Realizing Tax Justice Through Law-Abiding Tax Administration and Fostering a Culture of Honest Tax Payment

Songpa-gu (Mayor Seo Gang-seok) announced that it has filed criminal charges with the local police station against three corporations and corporate representatives who failed to pay the local income tax special collection without justifiable reasons, classifying them as special collection non-compliance offenders.

The local income tax special collection is a local tax whereby withholding agents under the Income Tax Act, etc., report and pay 10% of the withheld income tax and corporate tax amount to the local government of the business location simultaneously with the withholding of income tax and corporate tax.

Earlier, in June, the district sent payment reminder notices to 527 local income tax special collection defaulters in the area to encourage payment. Additionally, in August, advance warning notices of criminal charges were sent to 14 high-amount defaulters owing more than 10 million KRW.

However, despite continuous warnings and notifications of impending charges, three individual business owners, corporations, and corporate representatives continued to fail to pay the local income tax special collection or submit explanatory materials without justifiable reasons.

Accordingly, in October, the district filed charges with the Songpa Police Station against three business owners who owed more than 10 million KRW and did not express any intention to pay. The total amount they owe reaches 45 million KRW.

According to the Local Tax Basic Act, special collection non-compliance offenders may be subject to imprisonment for up to two years or a fine of up to 20 million KRW.

The district plans to regularly send payment reminder notices to small-amount defaulters to encourage voluntary payment, provide installment payment opportunities to those who find lump-sum payment difficult, and continuously manage payment compliance, thereby conducting meticulous tax administration.

Seo Gang-seok, Mayor of Songpa-gu, stated, “Failure to pay specially collected taxes constitutes tax crime when corporations misuse taxes paid by workers. We will strictly respond to offenders’ violations through strong measures such as criminal charges and realize tax justice through tax administration faithful to law and principles.”