Gyeonggi-do Reports 4 Individuals for Evading Acquisition Tax Through Violation Case Investigations

Gyeonggi Province has filed charges against four individuals who evaded tax obligations through fraudulent methods or processed accounting with fictitious transactions based on investigations of penal cases.

Penal case investigations involve tax officials directly interrogating delinquent taxpayers or conducting searches and seizures under the designation of the local prosecutor's office chief. Gyeonggi Province operates a dedicated local tax penal case investigation team consisting of two members, imposing fines or filing charges with investigative agencies upon detecting illegal activities.

Over the past year, through prosecutor designations, Gyeonggi Province investigated 38 penal cases including local tax evasion and avoidance of delinquency disposition, uncovering cases such as acquisition tax evasion on newly constructed buildings (4 individuals charged) and investigations into high-amount delinquent taxpayers lending business registration names (8 individuals subject to administrative disposition).

Gyeonggi Provincial Government

In this process, 1.08 billion KRW in acquisition tax was recovered, and 28 million KRW in delinquent taxes was collected.

Administrative disposition refers to an administrative action where, instead of criminal prosecution, an administrative agency orders payment of fines or penalties of a certain amount in penal cases related to taxes, customs, immigration control, road traffic, and others.

No Seung-ho, Director of the Tax Justice Division of Gyeonggi Province, stated, "Penal case investigations are a powerful means to inform that those who underpay local taxes unfairly or evade payment of delinquent taxes may face criminal punishment," adding, "We will continue to strive to establish tax justice by systematically responding to intelligent tax evasion and delinquency disposition evasion through the dedicated penal case investigation team."