National Tax Service Conducts On-Site Searches of 124 High-Value Delinquent Taxpayers
Seizes 8.1 Billion Won in Cash and Luxury Watches
Delinquent taxpayer Mr. B was in arrears on several hundred million won in global income tax. An analysis of his living conditions showed that he was residing in Busan and enjoying a lavish lifestyle with his family. In response, the National Tax Service launched a search of his residence and found a kimchi container packed with bundles of 50,000-won notes inside the storage cabinet under the bathroom sink. After seizing 200 million won in cash on the spot, Mr. B, feeling the pressure, paid the remaining delinquent amount in full two weeks later, enabling the authorities to collect a total of 500 million won in back taxes.
The National Tax Service announced on the 26th that last year it carried out on-site searches on 124 high-value delinquent taxpayers, seizing 1.3 billion won in cash and 6.8 billion won worth of assets such as gold toad figurines and luxury watches, for a total of 8.1 billion won in assets seized on site.
Officials from the National Tax Service are inspecting cash found in a kimchi container that a tax delinquent had placed in a cabinet in the bathroom of his residence. National Tax Service
The National Tax Service is conducting intensive, on-site focused collection activities against unscrupulous high-value and habitual delinquent taxpayers who are capable of paying but conceal assets and enjoy a luxurious lifestyle. In November last year, it launched a "Special Task Force for Tracking High-Value Delinquent Taxpayers" to swiftly identify assets when large tax delinquencies occur, preemptively seize them before the taxpayers can spirit them away, and strengthen searches for hidden assets.
According to the National Tax Service, delinquent taxpayer Mr. A reported but did not pay capital gains tax arising from a real estate transfer, leaving tens of billions of won in arrears. Mr. A gave cash to family members, withdrew part of the funds in cash, and his family’s consumption expenditures were also excessive, leading the National Tax Service to select him for a tracing investigation. When officials entered the registered address with the police after opening the door, his daughter came out saying she was going to work with a bag on her shoulder. When they checked the bag, it contained 100 million won in bundles of 50,000-won notes.
The National Tax Service also collected 100 million won after a seven-hour standoff with a delinquent taxpayer who had withdrawn an apartment sale payment in cash hundreds of times and hidden it at home. Delinquent taxpayer Mr. E, aged 78, sold an apartment in Seocho-gu, Seoul, for tens of billions of won and failed to pay the related capital gains tax, leaving several hundred million won in arrears. A review of his financial transactions indicated that he had concealed the sale proceeds by withdrawing cash in 1 million won increments hundreds of times from ATMs. When the National Tax Service moved to conduct a search, Mr. E’s spouse refused to open the door for about seven hours. Eventually, after the National Tax Service notified them that it would "forcibly open the door," the door was opened. The search uncovered 50,000-won notes hidden throughout storage spaces in the wardrobe and dressing table, as well as two bundles of 50,000-won notes in a cardboard box on the apartment veranda, totaling 2,200 50,000-won notes and 110 million won collected.
An official from the National Tax Service said, "The seized cash will be applied to offset the delinquent tax, and the seized items will be put up for public auction," adding, "The National Tax Service will continue to conduct swift on-site searches of high-value and habitual delinquent taxpayers to improve collection performance and realize tax justice."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
