Korean Job Discussion Forums

[garykasparov]

Tax Dodgers Face Punitive Taxes

http://www.koreatimes.co.kr/www/news/nation/2008/05/123_24416.html

By Kim Jae-kyoung
Staff Reporter

The nation's tax agency will levy heavier additional taxes on premeditated tax dodging in order to discourage potential tax evasion, according to the top tax man.

In a radio talk show on Monday, Han Sang-yool, commissioner of the National Tax Service, said that the agency has pushed ahead with a policy to beef up tax investigations against dishonest tax payers and to impose higher additional taxes on intentional tax evasion.

``We have planned to scale back on tax investigations for honest taxpayers and dispose more for an inspection team against dishonest tax payers,'' Han said during the show.

During his presidential election campaign, President Lee Myung-bak pledged that his administration would hike additional tax rates on tax dodging to as high as 100 percent from the existing 50 percent.

``Our tax investigation reform plan is based on the assumption of honest tax payments,'' Han said, stressing that strengthening law enforcement against dishonest taxpayers and stricter execution of the laws will pump up morale for honest businesses.

``In tax administration, it is most difficult to secure trust from the people,'' he added. ``We have decided to overhaul the tax investigation process from the taxpayers' perspective in a way to mitigate vague anxiety among small businesses and to gain people's trust through customer-centered administration.''

Regarding a question as to whether the envisioned new tax investigation plan will ensure enough tax collection, he said, ``We don't feel burdened as we collect taxes according to the laws.''

``For those paying taxes truthfully, broader tax base and lower tax rates should be sought after, which will ensure sufficient tax collection.''

As for real estate taxes, he said that it is under the jurisdiction of the Strategy and Finance Ministry and it is not desirable (for me) to comment on that issue because it may send a wrong signal to the market.''

[email protected]