[단독]National Tax Service initiates a special tax investigation for Lakeside Construction, ranked 44th in the financial ranking

The 4th Bureau of Investigation at the Seoul Regional Tax Office, called the’Special Department of the National Tax Service’, is conducting a special tax investigation on the construction of the 44th largest lakeside in the business world.

According to the construction industry on the 25th, the 4th Investigation Bureau of the Seoul Regional Tax Office sent investigators to the head office of Lakeside Construction in Yangjae-dong, Seoul on that day to bring tax and accounting data. Hoban Construction, which was subject to a regular tax audit in 2017, will be subject to a regular survey next year, but it has undergone a special tax audit on that day. The 4th Investigation Bureau of the Seoul Regional Tax Office is mainly responsible for special investigations such as tax evasion and slush funding of large corporations. This is why the four investigation bureaus are called special departments of the National Tax Service.

A tax investigation on Lakeside Construction, which was recently investigated by the Fair Trade Commission on unfair management practices, was somewhat predicted. On the 4th of last month, the Fair Trade Commission conducted a site investigation into the headquarters of Hoban Construction on charges of operating a’spoofed affiliated company’, including omission of data on affiliates held by the company’s owner-in-law. The Fair Trade Commission suspects that Hoban E&C has omitted some of the subsidiary’s data in the process of submitting the designation data for a business group (large business group) restricted from mutual investment.

Hoban Construction was designated as a large corporate group for the first time as its assets exceeded 5 trillion won in 2017. Hoban Construction, which has 36 subsidiaries, has assets of 9,146 billion won last year, and ranked 44th in the business world. In the construction capability evaluation last year, Lakeside Construction ranked 12th and Lakeside Industry ranked 34th.

The Fair Trade Commission annually submits data for designation of large corporate groups from companies with a total asset value of 5 trillion won or more, and designates those with 5 trillion won or more as publicly subject corporate groups and 10 trillion won or more as mutual investment restricted groups. In the case of false submissions or omissions of data in this process, a complaint may be filed based on the materiality. The Fair Trade Commission is also investigating the suspicion of “driving work” by the owners of the lakeside construction company.

Reporter Kim Won [email protected]