Thorough Examination of Multi-Home Owners

Authorities will strengthen their crackdown on tax evasion of some owners of multiple houses who have fabricated legal documents to pretend to have only one residence.

The National Tax Service (NTS) announced yesterday that it began to examine housing ownership as the government unveiled comprehensive anti-speculation measures, targeting multiple-home owners by slapping heavy taxes on their excessive property holdings.

The NTS will use computerized resident data from the Ministry of Government Administration and Home Affairs to track down multiple-home owners who forged documents to state that they have only one house in order to elude heavy taxation.

Such a move came as observers pointed out that some owners of multiple housing may try to evade taxation as the government announced the massive anti-speculation drive. Starting next year, owners of more than three houses in speculation zones or speculation-prone areas will have to pay the maximum of 75 percent more in holding taxes if they do not actually reside there.

The NTS will input various property transaction data including actual house prices and transfer income taxes into its database to keep a close eye on realty price fluctuations.

It will also utilize other computer systems such as a comprehensive real estate information system that will be in effect next year.

The NTS is also considering banning the correction of a transaction price recorded on a contract to prevent tax evasion by underestimating realty prices. Currently, the correction is allowed by district tax offices, and some people abuse the system to decrease transfer income taxes.

Ji-Wan Cha cha@donga.com