Tax Investigation on Apartment Sales

The National Tax Service (NTS) has kicked off an investigation on the apartment sales.

The NTS yesterday ordered the tax offices in the nation to collect transaction information including sealed apartment sales contracts, the deeds of transfer, and the present condition of premium, and to report by the end of this month. The NTS plans to computerize the collected information to use it as individual taxation information.

The NTS decided to do the intensive tax investigation, including the confirmation of the trade partners and the trace of the financial accounts, after finding out those who did not report the transfer income tax or those who are suspicious of having reported the less profits than they actually made through the computer analysis.

A NTS official said, "If one is found out that he or she has not reported the transfer income tax, or one has reported the less amount than he or she has actually made, he or she has to pay 10 percent of additional tax for the perfidious tax report and the additional tax for perfidious payment (0.05 percent per day)."

The NTS`s all-round investigation was based on the evaluation that there have been numerous cases of tax evasion while the premium of apartment purchase rights has recently exceeded hundred of millions won in Kangnam, Seoul. According to the NTS` tentative survey result, the maximum premium of 14 apartments (39 types of pyong), including Samsung Apartment in Dogok-dong, Kangnam-ku, Seoul, exceeded 150 million won.

Director Kim said, "The apartment purchase rights market is anticipated to continue to be active. From now on, we plan to regularly collect the trade information and to computerize it."

Cheon Kwang-Am iam@donga.com