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georgewallas
Joined: 26 Nov 2007
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 Posted: Fri Jan 11, 2008 8:49 pm Post subject: Employer refuses to pay taxes. What can be done? |
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The employer must file for you, as far as I know.
I am resigning [there's a laundry list of problems with this particular employer], and I want to make sure that he keeps his end of things. I called the tax helpline, and they claim that "it's too early" to do anything about it, and that all they can do is "tell him to do so", whatever that means.
Is this true? Are they really this toothless in the tax office?
Last edited by georgewallas on Fri Jan 11, 2008 9:06 pm; edited 1 time in total |
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spliff
Joined: 19 Jan 2004
Location: Khon Kaen, Thailand
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| Posted: Fri Jan 11, 2008 8:52 pm Post subject: |
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| He can make a one time payment. He has done nothing wrong. What's your beef? |
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georgewallas
Joined: 26 Nov 2007
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| Posted: Fri Jan 11, 2008 9:05 pm Post subject: What? |
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| spliff wrote: |
| He can make a one time payment. He has done nothing wrong. What's your beef? |
A one time payment, to whom? |
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wylies99
Joined: 13 May 2006
Location: I'm one cool cat!
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| Posted: Fri Jan 11, 2008 9:45 pm Post subject: |
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How long have you worked there? Taxes for 2007 had to be fully paid up (to Tax Office) by December 31, 2007.
You'll get a better response if you visit the Tax Office with all of your documents. |
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georgewallas
Joined: 26 Nov 2007
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| Posted: Fri Jan 11, 2008 11:08 pm Post subject: Visiting the tax office |
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The reason I called the hot line was that they speak no english in the Tax Office here [Cheonan-Si]. ]
They checked, and based on my ARC# could only say that I am not in the system.
I got nowhere past that.
Could you tell me which documents the employer must file?
Also [it's been 2 weeks of browsing and calling, and I still don't know the answer], now that the taxes are "filed" and the dues are "paid" do I get the difference between the witholdings and the actual tax paid from the employer, or the tax office? |
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jangsalgida
Joined: 11 Jan 2006
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| Posted: Fri Jan 11, 2008 11:56 pm Post subject: Re: Visiting the tax office |
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| georgewallas wrote: |
The reason I called the hot line was that they speak no english in the Tax Office here [Cheonan-Si]. ]
They checked, and based on my ARC# could only say that I am not in the system.
I got nowhere past that.
Could you tell me which documents the employer must file?
Also [it's been 2 weeks of browsing and calling, and I still don't know the answer], now that the taxes are "filed" and the dues are "paid" do I get the difference between the witholdings and the actual tax paid from the employer, or the tax office? |
원천징수
The above form is what needs to be done by the employer to file your taxes. The one time payment may be correct(Spliff) but the form above must be completed each year, I think by the end of January? Not many of us work from Jan. to Jan., so that means most employers should have to file twice(once each Jan), if we complete the 1 year contract.
How they calculate your return depends on how much the hagwon estimated your tax to be. Last year I got back just over 100,000 Won while only earning 7.5 million Won in 6 months. Another year working at a different place, I received a 600,000 Won return working 7 months and earning about 15.5 million Won. I'm not sure if they filed the following year for my remaining 5 months, I'm currently working on that along with other things.
Last edited by jangsalgida on Sat Jan 12, 2008 12:18 am; edited 1 time in total |
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spliff
Joined: 19 Jan 2004
Location: Khon Kaen, Thailand
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| Posted: Sat Jan 12, 2008 12:11 am Post subject: |
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| Whatever...I don't pay tax. |
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jangsalgida
Joined: 11 Jan 2006
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| Posted: Sat Jan 12, 2008 12:17 am Post subject: |
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| spliff wrote: |
| Whatever...I don't pay tax. |
Are you Korean? |
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yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
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| Posted: Sat Jan 12, 2008 3:31 am Post subject: |
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| spliff wrote: |
| He can make a one time payment. He has done nothing wrong. What's your beef? |
What do you mean "What's your beef?" His employer is deducting taxes from his paycheck and pocketing them.
I read that your employer may pay taxes every six months instead of the 10th every month if he makes some sort of arrangement with the tax office. But obviously the tax office makes no effort to do anything about it. Or at least the person you dealt with is just getting rid of a caller.
Go in person to the tax office and raise your concerns. |
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yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
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| Posted: Sat Jan 12, 2008 3:37 am Post subject: |
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| spliff wrote: |
| Whatever...I don't pay tax. |
That's a really important piece of information. Thanks for sharing.
But...
You have to assume, before you sign a contract, that your boss is not going to remit your taxes. That's why you have to be firm and say, "NO TAXES!" Sounds out there, but in most cases it's the best. But then pension and health care contributions come into play. Many here would think that your boss couldn't get away with not paying taxes while he is paying health and pension, but this just isn't true. Korea is fkd that way. You also have to call in to these office to make sure he's making the payments anyway. The problem with having negotiated taxes not being paid means you won't be able to get a return. But I say screw it. If you have pension and health, that's enough. If he's deducting the amount according to the withholding calculator, I also say screw it. But you could always prove to him that the tax office has told you he's not remitting them and you want it back. Scream it in his fkg ear if need be. That's the only thing these people understand. |
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georgewallas
Joined: 26 Nov 2007
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| Posted: Sat Jan 12, 2008 4:03 am Post subject: Speak softly |
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Yelling won't help. Only fines work with this *beep*.
Since I have tried the usuall chanels [e.g going to the tax office, and the helpline], and I am not getting anywhere, so I am turning to the grape vine.
This is to be my last paycheck. I understand that he's supposed to provide me with some certificate or another showing what he paid taxes, and how much.
Can anyone confirm or deny this? |
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jangsalgida
Joined: 11 Jan 2006
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| Posted: Sat Jan 12, 2008 8:20 pm Post subject: Re: Speak softly |
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| georgewallas wrote: |
Yelling won't help. Only fines work with this *beep*.
Since I have tried the usuall chanels [e.g going to the tax office, and the helpline], and I am not getting anywhere, so I am turning to the grape vine.
This is to be my last paycheck. I understand that he's supposed to provide me with some certificate or another showing what he paid taxes, and how much.
Can anyone confirm or deny this? |
Yes, it is a law that employers must provide income and witholding information on your pay-slips(monthly). They should also have it on an excel type format that includes the school's red stamp(인감/een gam). You will be lucky to get all that done but good luck. If they don't do it, call the English tax phone line. The tax consultant should call the school and tell them to provide that information to you. If the school doesn't comply, call the tax line again. You should do this only after you get all your money/last paycheck. |
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georgewallas
Joined: 26 Nov 2007
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| Posted: Sat Jan 12, 2008 9:25 pm Post subject: Pay stubs are present and accounted for |
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I have the stamped and issued pay stubs [something I did insist on].
The end of the year came and went, and when I was supposed to get a year-end-tax settlement [all sources agree on that], from the employer, I got nothing.
This is where the problem begins. I am recieving conflicting [or no] answers regards the next steps;
As I understand it;
* The owner gives you the year-end-tax-settlement and returns the difference between witheld and paid taxes. [or maybe he pays everything, and the tax office sorts it out?].
* At the end of the employment the owner gives a certificate denoting the amount paid, and that in turn is used in the US/Canada, to avoid double taxation, as well as here to get a refund. [or he files for a refund for me].
There's a timeline problem, there's an accuracy problem.
* where does this 원천징수 form
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| what needs to be done by the employer to file your taxes. |
Can anyone please refute or agree with these preocedures?.
BTW, KEB has a direct remitance account, where money is sent into a korean account [theirs] and remitted automatically to a foriegn account, and that how a refund is issued abroad.
Last edited by georgewallas on Sat Jan 12, 2008 10:10 pm; edited 2 times in total |
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lastat06513
Joined: 18 Mar 2003
Location: Sensus amo Caesar , etiamnunc victus amo uni plebian
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| Posted: Sat Jan 12, 2008 10:01 pm Post subject: |
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Actually, threatening to call the tax office on an employer is one of the biggest cards a person can have as a bargaining chip because the Korean tax office DOES take paying taxes very seriously....contrary to what alot of people think.....
Although they (the tax office) say that its too early for them to do anything......if you go to the tax office and state that you are an employee of such-n-such language institute and you believe that the taxes taken from your check are not being given to them (granted that you provide hardcopies of your pay statements and your initial contract), they will be more than happy to perform an audit on your respective institute, which will be a huge headache to your boss and to his books- and if the books shows he is indeed holding back from the gov't (although Korea is considered a free-market democracy, it is very equalitarian in the way taxes SHOULD be collect, in the Kantian way at least.....), your boss might be looking at a number of penalties....
~ He could be given punitive fines
~ His hakwon lisence could be revoked
~ He could see seizure of his assets, both personal and financial assets
~ He could see jail time for tax evasion (which makes headlines in Korea when big company execs do it)
I learned this from someone who'd been in Korea for over 20 years and I used it as a bargaining chip several times during my stay in Korea.
The tax office is far from being toothless from my understanding.... |
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georgewallas
Joined: 26 Nov 2007
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| Posted: Sat Jan 12, 2008 10:13 pm Post subject: |
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| lastat06513 wrote: |
Actually, threatening to call the tax office on an employer is one of the biggest cards a person can have as a bargaining chip because the Korean tax office DOES take paying taxes very seriously....contrary to what alot of people think.....
Although they (the tax office) say that its too early for them to do anything......if you go to the tax office and state that you are an employee of such-n-such language institute and you believe that the taxes taken from your check are not being given to them (granted that you provide hardcopies of your pay statements and your initial contract), they will be more than happy to perform an audit on your respective institute, which will be a huge headache to your boss and to his books- and if the books shows he is indeed holding back from the gov't (although Korea is considered a free-market democracy, it is very equalitarian in the way taxes SHOULD be collect, in the Kantian way at least.....), your boss might be looking at a number of penalties....
~ He could be given punitive fines
~ His hakwon lisence could be revoked
~ He could see seizure of his assets, both personal and financial assets
~ He could see jail time for tax evasion (which makes headlines in Korea when big company execs do it)
I learned this from someone who'd been in Korea for over 20 years and I used it as a bargaining chip several times during my stay in Korea.
The tax office is far from being toothless from my understanding.... |
For politeness sake, I will not claim he's lying, or that he's trying to steal from both me and the government, but that he is not being forthcoming about his duties and all I want is what he owes me.
This is a search for information about what the procedure is, and without a threat or raising my voice, to get these goals accomplished. |
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