[단독] “The economy is dying, but the tax bomb”… Most tax objection claims ever

Last year, the case of filing a tax trial in objection to the’tax bomb’ reached a record high.

According to the data submitted by the Tax Tribunal by Seong-ho Jeong and the Democratic Party’s Office of the National Assembly’s Planning and Finance Committee on the 17th, the total number of tax trial cases accumulated until November of last year was 1,5839 cases, which was one year earlier It was found that it increased more than 35% from 11,703 cases. Since the establishment of the Tax Tribunal in 2008, the number of requests for trials is the largest and the largest increase.


60 tax complaints per day… Ragged property tax blame


The highest number of tax court claims ever

After the September 13th Real Estate Measures in 2018
3 times dissatisfaction due to excessive taxation
4 out of 10 local taxes lose the government
“Only the people are damaged by unclear tax laws”

# Mr. A, who lives in the province, transferred the 645㎡ detached house he owned to his child three years ago, and did not file a transfer income tax report for housing because he judged that it was subject to the tax exemption requirements for one household in a rural area. However, the tax authorities imposed a transfer tax on the grounds that landscaping trees were planted on the adjacent land by tracking aerial photographs before the transfer of the house. This is because it was judged to exceed 660㎡, which is the non-taxable area standard, if the land area is included. In April of last year, Mr. A filed a request for a tax complaint with the Tax Tribunal, saying, “The tax is unfair.” In a recent decision, the Tax Tribunal decided to cancel the transfer tax imposed, saying, “The evidence is insufficient only with satellite photos.”

The number of cases of such dissatisfaction with taxation and the loss of the government’s tax trials has increased markedly in the current government. The main reason is that the Moon Jae-in administration has announced measures for real estate 24 times, and the real estate-related tax has been revised several times within a year. In addition, as the tax burden on the people increased significantly, many people were unable to accept the tax treatment.

In particular, in 2019, when the requirements for non-taxation of transfer tax for one household and one homeowner were further strengthened through the ‘9·13 countermeasures’, judgments related to transfer tax soared to 1439 cases, raising the atmosphere of a sharp increase in appeals.

This is because there are many exceptions and complex tax exemption for one household and one house, so if you make a mistake, a penalty bomb could be blown up in heavy taxation. Even front-line tax accountants are complaining about the’raged real estate tax’. In particular, the amount of the transfer tax varies depending on the period of residence, sale, acquisition, and rental income earner registration, and the rate of transfer tax according to each detailed requirement has changed depending on the time of the announcement of the measures. ”’ also appeared.

Local tax cases such as transfer tax as well as acquisition tax also increased from 1808 cases in 2016 to 5243 cases in 2019. Last year, 4870 claims were filed until November. Jeong Seong-ho, a member of the National Assembly’s Planning and Finance Committee, said, “The reason for the increase in tax complaints is not only due to the high tax burden, but also due to unclear taxation or differences in interpretation of laws and regulations.” If a clear interpretation of the taxation authority is achieved, tax complaints will also naturally decrease,” he predicted.

In particular, from this year onwards, the tax burden arising from all stages of real estate transactions will be greatly heavier, and the related tax dispute is expected to become’saturated’. This is because the comprehensive real estate tax paid by owning a house, the transfer tax paid when selling a house, and the acquisition tax paid when buying a house go up all at once. An official from a bank’s tax team said, “Amid the overheating of house prices, more and more cases are disagreeing with the tax imposed while the tax authorities collect taxes such as transfer tax and gift tax according to stricter standards than before and determine the tax requirements.”

As complaints were rushing, the tax judge’s claim handling rate, which had been in the 70% range so far, fell to 50% last year. It means that as a taxpayer, you have to wait at least six months for the results of the judgment. Local taxes, such as acquisition tax, and transfer tax, as of November last year, reached 43.9% and 20.5%, respectively. It means that the government is losing 4 out of 10 cases of local tax and 1 out of 5 cases of transfer tax among tax disputes.

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