Posted April. 12, 2005 23:22,
An audit has been launched into tax evasion suspects who have hidden money overseas or have repeatedly concealed huge sums of income.
The National Tax Service (NTS) announced on April 12 that it initiated a comprehensive tax audit on 270 individuals who hid income for tax evasion in eight areas including illegal remittance, bars and night clubs, private loan business, real estate speculation, and high-income self-employment.
Those subjected to the audit are 77 individuals who have hidden their evaded income overseas, 50 excessive spenders and high-income self-employed, 47 large night club and bar owners, 50 loan sharks, 23 individuals who embezzled corporate money, and 23 real estate speculators and realtors who resold properties.
The NTS collected related documentation by sending inspection staff to 45 large bars and night clubs nationwide on the night of April 11, and also employed staff on April 12 morning for other individuals and businesses subject to the tax audit.
Regular tax audits related to tax evasion are being conducted into specific businesses or sectors, but a comprehensive audit into several sectors and areas is unusual.
We will root out deliberate and chronic tax evading practices across society, said NTS Commissioner Lee Joo-seong, stressing plans for a strict tax audit.
Judging that the cases of foreign exchange flight such as real estate purchase with money gained from tax evasion have risen significantly, the NTS plans to focus its inspection on property purchase overseas, remittances, and investment.
Those on the list for inspection in the domestic real estate sector include construction companies that built commercial complexes or upscale duplexes, speculation suspects, real estate agencies that resell property to buyers, and construction businesses that received tax credit by false relocation to local areas.
The NTS decided to levy penalty taxes on the evaded sum over the recent two to three years for every business, and to report to the prosecution violation of laws related to real estate and foreign exchanges discovered in the audit process.
The tax audit will be carried out over 30 days and can be extended depending on the results.