The National Tax Service announced on the 9th that it will strengthen the verification of unfair support for affiliates using public interest corporations and expedient inheritance and donation. This is because there are cases of violation of legal obligations while enjoying tax benefits as a public interest corporation.
When public interest corporations submit a’report on contributing property, etc.’ by the end of this month and disclose the financial statements to the National Tax Service’s Hometax on the 30th of next month, a full-fledged verification will be initiated. In 2018, a team in charge of public interest corporations newly established at each regional office verifies the expedient inheritance and donation of public interest corporations affiliated with large corporations. In addition, it is also a policy to confirm whether public interest corporations affiliated with large corporations are faithfully complying with the regulations that prevent them from holding more than 5% of their shares in affiliates and 30% of the stock price. Whether or not a specially related person such as a group owner of a large company exceeds 20% of the director’s quorum, advertisements and public relations activities without compensation for affiliates are also subject to verification.
On this day, the National Tax Service disclosed cases of violations of the tax laws of public interest corporations affiliated with large corporations. A representative public interest corporation affiliated with Group A, which recently added tens of billions of billions of additional tax, is a representative example. This public interest corporation was recognized as an exception to the sincere public interest corporation and owns more than 5% of the stocks of Group A affiliates. However, during the verification process by the National Tax Service, it was revealed that more than one-fifth of the total number of directors of public interest corporations were co-representatives of Group A affiliates.
Group B’s public interest corporations incurred a gift tax of billions of billions of dollars. The problem was that the newly constructed building was leased to a group B subsidiary at a lower price than the market rent. The National Tax Service judged that the difference was donated to a related person and charged the gift tax.
Reporter Noh Gyeong-mok [email protected]
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