NTS to refrain from tax inspections on companies

As economic conditions continue to deteriorate, the National Tax Service has decided to refrain from special tax inspections on companies that may depress corporate activities, issuing the order to all tax offices and administrations across the country.

A high-ranking official of the NTS said Monday that companies are feeling great pressure from various inspections conducted by government agencies such as the Fair Trade Commission and Financial Supervisory Commission.

So, he said, the NTS decided not to embark on new inspections for the time being excepting those already underway.

Under the decision, it is expected that about 5,000 businessmen will be exempted from NTS inspections in the fourth quarter of this year (October through December). Particularly, companies in slumped industries such as manufacturing, construction and wholesale trade will be excluded from the inspections unless they are linked to illicit, tax evasion cases.

Instead, the NTS plans to deploy more personnel to conduct inspections of immoral entertainment businesses such as so-called love hotels and those leading excessively luxurious lives.

The government agency made clear, however, that inspections will continue to be carried out in cases with few connections with economic activities such as property transfers and inheritance, and in cases for securing tax revenue.

Lee Hoon dreamland@donga.com