Korea and Australia Sign MOU, Clarifying Procedures for Compulsory Collection of Overseas Delinquent Assets
AI-Driven Tax Administration Innovation Unveiled
Plan to Introduce Free Tax Consulting for All Citizens
The National Tax Service is strengthening international cooperation for tax collection in order to thoroughly track down overseas concealed assets.
On September 18, Commissioner Lim Gwanghyun of the National Tax Service held a bilateral meeting with Rob Heferen, Commissioner of the Australian Taxation Office, during the 54th Meeting of the Study Group on Asian Tax Administration and Research (SGATAR) in Brisbane, Australia. The two commissioners signed a Memorandum of Understanding (MOU) on cooperation in tax collection.
Through this agreement, the two countries have clarified the procedures and scope for enforcing compulsory collection measures, such as seizing or auctioning off the assets of delinquent taxpayers, at the request of the other country. The National Tax Service stated, "This is significant in that it establishes a system that can effectively respond to overseas concealed assets of delinquent taxpayers," and added, "The foundation for international cooperation to eradicate malicious tax delinquency has been strengthened."
Commissioner Lim also introduced the National Tax Service's "AI Transformation" initiative at the SGATAR general meeting. He announced, "We will provide free tax consulting to all citizens by utilizing generative AI trained on extensive data, including tax laws, regulations, and precedents." He further emphasized, "We are developing a system that can automatically detect suspected tax evasion simply by entering basic tax audit data, and we will pursue digital innovation across the entire field of national tax administration."
The National Tax Service also requested cooperation from the international community to ensure that Korean companies can focus on their business activities overseas without tax-related uncertainty. In meetings with the heads of tax authorities from major countries with active economic exchanges, Commissioner Lim proposed that the mutual agreement procedures under tax treaties be actively utilized to promptly resolve double taxation issues. This procedure allows tax authorities to negotiate and resolve issues to prevent taxpayers from being disadvantaged by unfair taxation.
With the signing of this MOU with Australia, the National Tax Service plans to further strengthen its tax diplomacy with major countries in the Asia-Pacific region. Commissioner Lim stated, "By activating international cooperation in tax collection, we will realize tax justice and create an environment where Korean companies can confidently focus on their business activities overseas."
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