Korean Job Discussion Forums

[Bill58]

I just got an income tax bill from the Korea Tax Service for 1.4 million won taxes obviously unpaid by my crooked, former hogwan employer of 4 1/2 years ago!

Doesn't Korea law require the employer of foreigners to deduct income tax on a monthly basis and this law makes him liable for paying the Korea government?

In my case he made the deductions, but evidently never paid the government. He also never paid my health insurance, so I had to pay the back premiums to the National Insurance Agency in the amount of 220,00 won to get coverage with my next employer.

He is no longer in the hogwan business, reportedly declaring "bankruptcy" and trading back rent he owed for his BCM-Ilsan franchise, but is still in Korea, as far as I know, somewhere here owning and operating a gas station.

I'm quite sure this is not the first time this has happened, so what should I do?

Many thanks for your advice,

Bill

[I-am-me]

find you bank book or income statements. Show it was taken out. They can find your old employers ID# fairly easily. Let us know what happens...it should be an interesting case. You could even sue the guy probably.

[Michelle]

[TheUrbanMyth]

[Bill58]

Ok--here's the end of the story!

The tax bill mentioned above was NOT from the time I worked for the little crook at BCM/ Ilsan. It was from calendar yr. 2008, where approx. 3% was withheld from my honest employer.

However, since I filed no return (didn't know I had to) for that year, they sent me a bill for taxes on earnings at an approx. 18% (max.) tax rate!!!!! Typically, if you file a late return they will NOT adjust your tax bill lower.

Here's what else I learned:

1.) the Korean government considers you a taxpayer required to file a tax return if you stay/work here continuously over 12 months at any time, whatever your income;

2.) the Korean government has lowered the minimum income for income tax liability steadily over the past few years to a level where it includes most foreign teachers' paltry salaries:

3.) if you file a return, you may get a partial or full refund of taxes withheld;

4.) the deadline for filing a return for the previous yr. is 5-31 every year;

5.) you can get your school's CPA to prepare your return for you (at approx. 70,000 won extra cost to you), but be very careful not all CPAs here are honest (what a surprise);

6.) if you get a tax bill like me, don't pay it. Let the Korean government reduce it in ensuing years from refunds that you may be due when you file a return or leave for a year and they apparently wipe the slate clean. A new 12 months period will start again when you return;

7.) if you owe them $$, they will not deny you a visa (maybe).

8.) they won't "come after you" to collect or throw you in debtors' prison unless your tax bill is over 10m won (maybe);

9.) your district tax office is forever the one where you first worked here;

10.) they are not even close to the efficiency of the US IRS;

11.) cheating on your taxes is a national pastime for Koreans (duh!)

If anybody wants to comment or throw rocks (dispute) any/all this, have at it. this is all/ the best info I could get.

Bill

[Hawkeye Pierce]

[Rory_Calhoun27]

Hawkeye's in the correct city for the 4077th, but sounding a lot more like Frank Burns.... just make sure to keep a chonsa on the side before you cut Hotlips loose.... she's just too much trouble to put up for any length of time...

[tired of LA]