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bassexpander
Joined: 13 Sep 2007
Location: Someplace you'd rather be.
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 Posted: Wed Dec 16, 2009 7:02 pm Post subject: Korea wants to know how much money you have overseas |
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http://joongangdaily.joins.com/article/view.asp?aid=2914091
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Foreigners staying in Korea for over one year will have to report any bank accounts they hold outside Korea to local authorities beginning next year, according to the Ministry of Strategy and Finance yesterday.
Businesses based overseas that operate in Korea may be required to do the same, the ministry said.
In its 2010 policy guide submitted to President Lee Myung-bak, the ministry said overseas bank accounts would have to be reported for every resident in Korea. The local tax law defines a resident as anyone who lives in Korea for more than one year, regardless of nationality.... |
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Moldy Rutabaga
Joined: 01 Jul 2003
Location: Ansan, Korea
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| Posted: Wed Dec 16, 2009 7:08 pm Post subject: |
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| I doubt ESL teachers will be high on their priorities, based on what we earn. Still, it's an irritating invasion of privacy. I wonder how they can possibly enforce such a mandate. |
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proustme
Joined: 13 Jun 2009
Location: Nowon-gu
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| Posted: Wed Dec 16, 2009 7:08 pm Post subject: |
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| What's the purpose or thinking behind this move? |
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dragon777
Joined: 06 Dec 2007
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| Posted: Wed Dec 16, 2009 7:09 pm Post subject: |
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Most western governments ask this same question of their taxpayers.
What you tell them is your business. Very hard to prove a bank account
exists, however things are changing quickly. |
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bassexpander
Joined: 13 Sep 2007
Location: Someplace you'd rather be.
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| Posted: Wed Dec 16, 2009 7:12 pm Post subject: |
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| dragon777 wrote: |
Most western governments ask this same question of their taxpayers.
What you tell them is your business. Very hard to prove a bank account
exists, however things are changing quickly. |
They ask the same question of their CITIZENS.
We are not citizens of Korea.
As for why, I have a feeling that they would use this information to whatever advantage they can when doling out fines for illegal teaching if one were caught, for example. All they'd have to is ask you to prove where you were making the money going into your overseas accounts, and if you couldn't, they'd probably assume you made the money illegally in Korea. Until someone challenged them in court on such a practice, they could get away with whatever justification they came up with to levy high fines.
I wouldn't say this is something only for the rich to worry about. I also think they has a lot to do with Obama coming here recently. Rumors were circulating that lots of back-room issues were discussed, including controlling/watching the flow of money (probably due to tax evaders and terrorism). Also, somewhat unrelated, the USA is really pushing Korea to do something about movie pirating here. |
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crescent
Joined: 15 Jan 2003
Location: yes.
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| Posted: Wed Dec 16, 2009 7:14 pm Post subject: |
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Korea has financial information sharing treaties with a series of western countries. Even if you don't report anything, they can find this stuff out easily if you're audited.
Last edited by crescent on Wed Dec 16, 2009 7:16 pm; edited 1 time in total |
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runthegauntlet
Joined: 02 Dec 2007
Location: the southlands.
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| Posted: Wed Dec 16, 2009 7:16 pm Post subject: |
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Why?
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The ministry said the measure is aimed at preventing high-income earners from evading taxes by using overseas banks. |
Oh... |
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runthegauntlet
Joined: 02 Dec 2007
Location: the southlands.
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| Posted: Wed Dec 16, 2009 7:17 pm Post subject: |
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| bassexpander wrote: |
As for why, I have a feeling that they would use this information to whatever advantage they can when doling out fines for illegal teaching if one were caught, for example. All they'd have to is ask you to prove where you were making the money going into your overseas accounts, and if you couldn't, they'd probably assume you made the money illegally in Korea. |
Do you seriously think that?!!
Paranoid much?! Good god. |
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bassexpander
Joined: 13 Sep 2007
Location: Someplace you'd rather be.
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| Posted: Wed Dec 16, 2009 7:21 pm Post subject: |
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| runthegauntlet wrote: |
| bassexpander wrote: |
As for why, I have a feeling that they would use this information to whatever advantage they can when doling out fines for illegal teaching if one were caught, for example. All they'd have to is ask you to prove where you were making the money going into your overseas accounts, and if you couldn't, they'd probably assume you made the money illegally in Korea. |
Do you seriously think that?!!
Paranoid much?! Good god. |
Nope.
An F-visa friend of mine was recently audited here in Korea because one of his schools had listed him as a private contractor of some sort, but kept the taxes he'd been paying them (or something of that nature). The Korean tax officials sat him down and had paperwork on little side jobs he'd done since day one (he's been here years). They said he owed over a million in back taxes. Not sure how it turned out yet. He's a member of this board, but I don't know if he wants to talk about it yet/if ever.
I'm telling you -- people in Korea cheat like no tomorrow on taxes, but when caught, you'd be surprised what is known. |
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runthegauntlet
Joined: 02 Dec 2007
Location: the southlands.
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| Posted: Wed Dec 16, 2009 7:27 pm Post subject: |
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| bassexpander wrote: |
| runthegauntlet wrote: |
| bassexpander wrote: |
As for why, I have a feeling that they would use this information to whatever advantage they can when doling out fines for illegal teaching if one were caught, for example. All they'd have to is ask you to prove where you were making the money going into your overseas accounts, and if you couldn't, they'd probably assume you made the money illegally in Korea. |
Do you seriously think that?!!
Paranoid much?! Good god. |
Nope.
An F-visa friend of mine was recently audited here in Korea because one of his schools had listed him as a private contractor of some sort, but kept the taxes he'd been paying them (or something of that nature). The Korean tax officials sat him down and had paperwork on little side jobs he'd done since day one (he's been here years). They said he owed over a million in back taxes. Not sure how it turned out yet. He's a member of this board, but I don't know if he wants to talk about it yet/if ever.
I'm telling you -- people in Korea cheat like no tomorrow on taxes, but when caught, you'd be surprised what is known. |
Little side jobs he'd paid taxes on? If someone is putting him on a payroll, that makes sense. If they have info. on his earnings from privates, that'd be a little strange.
But again, in the article it specifically states that this is for tax-evading high earners. Who among us is a 'high-earner'? Besides all of those 10,000 won a minute posters....
Trickle down effect over the years? Maybe, but I wouldn't be freaking out just yet. |
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supernaut
Joined: 04 Jan 2007
Location: Nova Scotia
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| Posted: Wed Dec 16, 2009 7:40 pm Post subject: |
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I don't believe this targets E2 visa holders at all. It may target F visas though.
Even E2 visa holders who stay 10 years, must re-apply every year, so we are temporary visitors who stay under 1 year. |
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bassexpander
Joined: 13 Sep 2007
Location: Someplace you'd rather be.
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| Posted: Wed Dec 16, 2009 7:56 pm Post subject: |
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| supernaut wrote: |
I don't believe this targets E2 visa holders at all. It may target F visas though.
Even E2 visa holders who stay 10 years, must re-apply every year, so we are temporary visitors who stay under 1 year. |
Been here long enough to see the law bent in whatever way benefits those in charge. My school lists me as a full time employee, which makes them avoid government laws for not hiring enough Korean professors FT. Yet, I am a contract employee.
It's hard to know what will be done with this law, but I could see it being used in whatever way they felt fit to do whatever they want (until someone ponyed up enough cash to challenge it -- fat chance). |
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mc_jc
Joined: 13 Aug 2009
Location: C4B- Cp Red Cloud, Area-I
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| Posted: Wed Dec 16, 2009 8:51 pm Post subject: |
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I feel the big losers are going to be the individual expats- foreign companies will simply hire accountants to doctor up their books to fix the requirement the Korean government will be looking for.
I work for a US government entity, so I have to file my income taxes every year like I would if I were living and working overseas.
The advantage I have for filing my Tax Form 1040, I get a refund direct deposited into my account a week or so later.
But does this mean that ESL teachers won't be able to send as much money home as before? |
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Forever
Joined: 12 Nov 2009
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| Posted: Wed Dec 16, 2009 9:06 pm Post subject: |
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| supernaut wrote: |
Even E2 visa holders who stay 10 years, must re-apply every year, so we are temporary visitors who stay under 1 year. |
A person who resigns and applies for a new visa each year in NOT classified as a "temporary visitor" UNLESS the person at the end of each 1-year contract leaves Korea for a period no less than 1-month + 1-day. (32 days)
Less than 1-month + 1-day (32 days) outside Korea and your previous residency in Korea simply continues. |
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runthegauntlet
Joined: 02 Dec 2007
Location: the southlands.
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| Posted: Wed Dec 16, 2009 9:24 pm Post subject: |
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| mc_jc wrote: |
But does this mean that ESL teachers won't be able to send as much money home as before? |
How would that have any bearing on how much money is sent home? The whole point of this measure, once again, is to find high-earning tax evaders.
I mean, come on. |
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