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cdninkorea
Joined: 27 Jan 2006
Location: Seoul
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 Posted: Sun Jan 22, 2012 2:55 am Post subject: My landlord's blatant tax evasion |
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I rent a two bedroom place in Seoul (i.e. my employer doesn't provide it), and my landlord has always insisted on being paid the rent in cash. I knew this was probably for tax reasons, but since it isn't really any extra inconvenience for me to pay in cash, I have been.
Now that it's tax time, I told him that I wanted to claim my rent as tax-deductible. What did he do? He gave me the equivalent money I'd save on my taxes if I claimed the rent, since he keeps the income generated from rent hidden from the government. Seeing as how he owns two buildings besides the one I live in, he must be avoiding a lot of tax.
Anyone else have a landlord that does this? I guess having such blatant evidence of tax evasion (I have all my rent receipts) gives me leverage if he tries to nickel-and-dime me out of my key money at the end of the lease. |
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Sun Jan 22, 2012 3:27 am Post subject: |
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What he is doing is illegal, yes.
He is saving millions of won in taxes for owning and renting-out more than one building, most likely.
He might be listing it as an office rental, for example.
Welcome to Korea. |
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12ax7
Joined: 07 Nov 2009
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| Posted: Sun Jan 22, 2012 3:36 am Post subject: |
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| Swampfox10mm wrote: |
What he is doing is illegal, yes.
He is saving millions of won in taxes for owning and renting-out more than one building, most likely.
He might be listing it as an office rental, for example.
Welcome to Korea. |
Nope, the tax rate isn't really all that high (low enough that the OP's landlord is basically penny-pinching). And since January of this year, people no longer have to pay an increased tax rate if they own more than one property (which is why real estate values have been going up since December).
At least, have you filled out all the paperwork to register your deposit with city hall?
Last edited by 12ax7 on Sun Jan 22, 2012 6:05 am; edited 4 times in total |
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lowpo
Joined: 01 Mar 2007
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| Posted: Sun Jan 22, 2012 4:29 am Post subject: |
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| Ever since the goverment's has been charging people taxes. People have been cheating on their taxes. It is a way of life. |
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Cymro
Joined: 11 Jun 2004
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| Posted: Mon Jan 30, 2012 1:27 am Post subject: |
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I've found my landlord's doing the same and am considering the best way to go about getting some cash back. I know the deadline's tomorrow, but that could work in my favour, e.g. 'I'm about to go in the tax office right now, ajoshi.'
He owns a few buildings in the area and he's as tight as they get, but he has given up and paid up when I've persisted to be reimbursed for expenses fixing fittings like taps, electrical sockets and mosquito nets.
What kind of numbers are we talking here? I pay 800k pcm for my 2-bedroom place. |
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pkang0202
Joined: 09 Mar 2007
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| Posted: Mon Jan 30, 2012 1:38 am Post subject: |
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How else would you pay rent, except in cash?
Were you gonna put it on your credit card? Pay in gold bars?
Am I the only one who doesn't understand what the problem is? You can wire the money to their account, but tahts still CASH. |
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Konglishman
Joined: 14 Sep 2007
Location: Nanjing
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| Posted: Mon Jan 30, 2012 3:33 am Post subject: |
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| pkang0202 wrote: |
How else would you pay rent, except in cash?
Were you gonna put it on your credit card? Pay in gold bars?
Am I the only one who doesn't understand what the problem is? You can wire the money to their account, but tahts still CASH. |
The difference is that wiring money leaves an electronic record while paying in physical cash does not. |
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Chris.Quigley
Joined: 20 Apr 2009
Location: Belfast. N Ireland
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| Posted: Sat Feb 04, 2012 11:18 pm Post subject: |
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| Are you asking us how much to blackmail him for? |
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motiontodismiss
Joined: 18 Dec 2011
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| Posted: Sun Feb 05, 2012 1:27 am Post subject: |
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| pkang0202 wrote: |
Am I the only one who doesn't understand what the problem is? You can wire the money to their account, but tahts still CASH. |
It's pretty difficult to explain to an auditor that a deposit in the amount of hundreds of thousands of won labeled "RENT" is not taxable....
I honestly don't feel comfortable transacting more than US$10 without a paper or electronic trail of some kind. Which is why I don't transact in cash. I used to write out checks to friends I borrowed a dollar from, so I'm a little paranoid in that regard lol 
Last edited by motiontodismiss on Sun Feb 05, 2012 1:32 am; edited 1 time in total |
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motiontodismiss
Joined: 18 Dec 2011
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| Posted: Sun Feb 05, 2012 1:29 am Post subject: |
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| Chris.Quigley wrote: |
| Are you asking us how much to blackmail him for? |
I would say make the landlord pay all your utilities then crank up that heater to 30C. Should cost them a 200k-300k won.  |
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