Taxes on Chaebol inheritance to be audited

Lee Jong-Nam, chairman of the Board of Audit and Inspection (BAI), said Wednesday that the BAI would make an intensive investigation into the taxation on unlawful or omitted gains of the second-generation of conglomerates during the board¡¯s inspection of the National Tax Service (NTS) this year. Lee said that the board would rectify any wrongdoings it finds.

At a press conference, Lee said that the BAI would conduct an in-depth inspection of the management of tax revenue this year in an attempt to make the operation of the national finance healthier.

Noting that irregular gifts to Chaebol¡¯s second generations have been the target of criticism nowadays, he said that the BAI would focus its audit and inspection of the NTS on whether or not to impose back taxes on them or on the results of the taxation, although it cannot conduct inspection on individuals under the present law.

¡°Right after the National Assembly has finished its ongoing investigation of the administration and poured the second phase of public funds amounting to about 50 trillion won, the BAI will launch a special inspection on all procedures concerning the creation, operation and reinvestment of public funds, following its first-phase special inspection on public funds in 1999,¡± Lee said.