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300 Billion Fake Tax Bill Crackdown

Posted January. 24, 2007 06:20,   


A domestic “information dealer” who circulated 300 billion won in fake tax bills in regions including the Namdaemun Market in Seoul has been caught.

Information dealers are firms or individuals who sell fake tax bills so that individuals or corporations can receive value-added tax deductions.

The National Tax Service, after receiving information that an information dealer was producing fake tax bills, attacked the dealer’s site on Monday and announced yesterday that it is investigating it for tax infringement.

According to the National Tax Service, this organization sold at least 300 billion won in fake tax bills to 689 shops, including Namdaemun and Dongdaemun, over the past five years.

The organization borrowed a CPA’s name to start a triangular intersection method in which shops exchanged tax bills without any physical trading. It paid part of its profit to shops’ prosperity committees as commission.

The National Tax Service plans to examine those shops which bought fake tax bills and disqualified tax representatives and file a complaint with the prosecution.

National Tax Service examiner Oh Dae-sik said, “Namdaemun’s fake tax bills trading act has become a general practice. It is hard to estimate tax omission amounts.” He added, “We will make a thorough investigation of other shops as well.”

In addition, the Busan Regional National Tax Service announced that it has arrested three information dealers who received erroneous profit of 64 million won by issuing 1.7 billion won worth of fake tax bills through its dozen telemarketers.