Tax Evasion on Real Estate Sale Proceeds... Prosecutors Indict Couple for Sham Divorce

Evading 800 Million Won in Taxes

A married couple who staged a sham divorce to evade taxes on real estate sale proceeds has been brought to trial.

Seoul Northern District Prosecutors' Office. Yonhap News Agency

The Tax Crime Investigation Division of the Seoul Northern District Prosecutors' Office, led by Chief Prosecutor Lee Taehyup, announced on the 18th that Mr. A (age 70) has been indicted and taken into custody on charges of violating the Act on the Aggravated Punishment of Tax Offenses. His wife, Ms. B (age 66), who is accused of aiding and abetting, was indicted without detention.

Mr. A is accused of hiding assets under the pretense of paying alimony to Ms. B, with whom he staged a sham divorce, in order to evade approximately 800 million won (about 8 billion won) in national taxes, including income tax, generated from the sale of two real estate properties. During this process, Mr. A is also accused of fabricating a false statement by making it appear as if he was in an extramarital relationship with Ms. C, Ms. B’s older sister.

It was found that Mr. A withdrew the real estate sale proceeds in cash and checks from ATMs on 160 occasions and converted them into cash through a money laundering operator.

During the investigation, the prosecution notified the tax authorities of the findings so that the delinquent taxes could be collected.

A prosecution official stated, "Through supplementary investigations, such as executing account and communication warrants against the defendants, we have revealed that the crime was meticulously planned," adding, "We will continue to respond strictly to tax crimes that undermine the foundation of national finances and evade tax obligations through illicit means."