A customs duty defaulter has been detained in prison for the first time. Detention is an administrative measure aimed at improving the collection efficiency of high-amount and habitual defaulters and raising awareness about defaults to prevent further occurrences.
On the 9th, the Korea Customs Service announced that it had detained defaulter A, who deliberately and habitually evaded payment of a large amount of customs duties, at Uijeongbu Prison.
This is the first case since the Korea Customs Service introduced the detention system for high-amount and habitual defaulters in 2020 and actually enforced it. Previously, the Namyangju Branch of the Uijeongbu District Court issued a “30-day detention” order for A. Accordingly, A has been detained at Uijeongbu Prison from the 8th and will remain there until the 6th of next month.
According to the Customs Act (Article 116-4), detention is a system that allows the head of the Korea Customs Service to apply, prosecutors to request, and courts to decide to detain a high-amount defaulter who is capable of paying the defaulted amount but has habitually defaulted on customs duties of 200 million KRW or more three or more times, for up to 30 days in a detention center or similar facility.
A evaded customs duties by fraudulently winning import rights for agricultural products at public auctions using a third party (so-called front man) and importing agricultural products subject to tax rate ㄱ at a lower tax rate through customs clearance. A also defaulted on the additional taxes incurred during this process.
Busan Customs has continuously urged A to pay the defaulted amount. However, despite owning assets such as real estate worth approximately 4.6 billion KRW and stocks worth about 2.3 billion KRW under the names of A’s spouse and children, A did not pay any of the defaulted amount.
On the other hand, during a house search conducted last June at A’s residence and other locations, it was confirmed that A was living a luxurious lifestyle using a luxury car owned by the spouse’s company and residing in a luxury house under the spouse’s name. During the house search, items worth about 40 million KRW, including expensive watches and golf clubs used by A, were seized.
Accordingly, in October of last year, the Korea Customs Service, after a resolution by the Customs Information Committee, applied for A’s detention to the Namyangju Branch of the Uijeongbu District Prosecutors’ Office. The court approved the prosecutor’s request, enabling the execution of A’s detention. A did not appeal the court’s decision.
A Korea Customs Service official said, “A’s detention is the first case where a customs defaulter who failed to pay the defaulted amount without justifiable reason was detained in prison,” and added, “We hope A’s case will serve as a warning to customs defaulters who maliciously evade payment.”
He also added, “The Korea Customs Service will continue to strictly detain high-amount and habitual defaulters who evade payment without justifiable reason despite having the ability to pay, following proper legal procedures, to realize tax justice.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
