Korean Job Discussion Forums

[jjmonkey]

This seems to be an ongoing topic...please share what's happened to you;

Is there anyone out there who HAD a job like this and ran into tax problems?
i.e. After School Programs where you hold a visa with a school, but you work for a second party company that provides minimal support on the outside and controls the program at many other schools.
I worry, since ridiculously large sums of money (more than triple my salary) went into this account (A bank account in my name that they keep the pin number for and take complete control of) No proof of taxes being paid was ever given to me, I certainly asked for it. they charged me 5% and provided no insurance.
it's clear they are evading taxes in my name. Why does immigration and the labor board sit on their hands with this issue? Are enough people being paid off along the way? There are so many of these programs out there too.
Please share what has happened to you...

http://www.eslcafe.com/forums/korea/viewtopic.php?t=57919

[Cheonmunka]

Schools cannot pay a company for these programs, they can hire and pay individual teachers however. Hence dual contracts. So, the bank accounts are not illegal. It's not illegal that the money runs to a company, not as far as I know.
So, the tax service requires teachers to have a letter from these companies simply stating that the money that goes into this main bank account is not the teacher's but that company's. You will need this letter to get a refund. 5% is a little high.
As for whether the tax service will try and get taxes from you for however many miilions a month goes through that bank account may be spurious. For example, you have a daily bank account. In what name then is the payer of your salary. It would likely be some department with the school. All these details will probably all add up with the tax service.
Then, how about this letter to get a refund, and as a safeguard of proof should you need it? Well, you are going to have to be more assertive.
It's basic is it not to get a statement of income vis a vis taxes paid? Is it not part of labor law?

[jjmonkey]

[Cheonmunka]

I understand your frustration.
At the risk of seeming like I know more than I do about this subject, which I don't, I will make some guesses.
An Excel printout that breaks down each monthly salary and tax and that has the payer's details on it is enough to display your tax paid and salary earned. My last salary statements handed in to TS were Excel printouts.

There are 500 others in the same boat as yourself at these schools and the Tax Service do know about them. My wife caled them some time ago when checking out the legality of these bank accounts. They may well have this situation already understood. Unless they are dummies, they should know that it exists in this form.
As for whether they want to do something about it, who knows? Who knows why they don't? Too lazy?

I would not say that there will be any big problems with the amounts of money going through that account. If you get those salary statements there's good evidence about what you really earn. You just get a salary monthly from your school. So ... Let the Tax Dept audit the school accounts. They'd find something interesting!

Your request is to do with getting the company taken in for tax evasion and the company/school forced to comply with labor law. But when no one knowws exactly who is the employer it's all too without the square of things. Is it not then that the whole system needs to be overhauled?

Until then, you said that you need the statements. I hope as your priority you get them.

BTW: In your post you mentioned that the company earns three times what you do. I know it seems unfair, but remember too that Hakwon teachers usually receive just 12-16% of their direct class fees. This is a big rip off, too. And a more prevalent one.
Don't get me wrong.I'm not undermining or making small your request for info and emotions around the whole crappy situation.
I would feel angst and anger myself.

[jjmonkey]

[Cheonmunka]

I'm gonna write fast.

Let's talk more about this... but time's short until later this evening. I'll read your letter then.

The registration of thses companies is not illegal but the tax dept is trying to change them.,...... plot plot plot and synapsis..

[Cheonmunka]

Basically they have a basic company registration. They do not have to have worker insurances, pensions going etc, but the Tax service wants them to. The Tax service keeps reminded them of the other options. Still, with the basic registration your severence pay etc is safe due to basic Labor law.

So, in the end I reckon that the TS will eventually pull finger and sort this out. I think because they acknowledge that there is this difficulty your rights will be safe.
But I also reckon a safeguard is in the statements, in whatever form it is still a format that is agreeable to TS. That is Excel format. I think it is important to get that.

[jjmonkey]

It's interesting that everyone I talked to, at the TS, LB, SMOE and a local lawyer, said they never heard of teachers giving up bank accounts and that under no circumstance should one do it. Time will tell..