NTS Imposed W 1.62 Trillion On Tax Evaders

The National Tax Service (NTS) announced yesterday that it has discovered 3,156 tax evaders, who concealed income not to pay taxes, and imposed back taxes amounting to 1.62 trillion won. The amount of back taxes is the biggest fine ever imposed by the NTS in its history and is an increase of 37 percent from the same period last year.

The NTS has also indicted 572, who evaded taxes through swindle or issued forged receipts of taxes, and reported 46 of them, who are subject to the monetary penalty, to the prosecution.

According to the types of the amount of back taxes, fines of 590,2 billion won, charged for the deranged transaction, were the biggest fines, fines of 475.6 billion won were imposed on people who have illegally smuggled money out of the nation, fines of 263.6 billion won were imposed on those who illegally inherited, fines of 65 billion were imposed on retailers of luxury goods, fines of 19 billion won were imposed on upper class people, and 206 billion were imposed on loan sharks.

Lee Joo-Suk, director of investigation in NTS said that ``the amount of back taxes has increased not because tax evasion has increased but because the investigation of the NTS has strengthened. The rate of the voluntary tax payment is on a rise.``

While the NTS plans to intensify the investigation on people who maintain luxurious life style without a clear source of income in the latter half of the year, it plans not to investigate small-medium companies and venture firms, which have contributed to employment and economic growth, and exemplary companies who have adjusted to restructuring, as long as they are not suspicious of tax evasion.

iam@donga.com