The National Tax Service announced on the 7th that it had taxed 1543 people last year and collected 125.2 billion won in real estate transactions. In most cases, they received funding for their home purchases and did not pay the gift tax properly. Even this year, the National Tax Service announced that it has entered into a tax audit on 358 people who are suspected of tax evasion related to real estate.
The IRS also presented a case where tax evasion was confirmed last year. A representative example is Mr. A, who bought an apartment worth over 1 billion won immediately after returning home after studying abroad. He used the proceeds from selling various luxury goods purchased while studying abroad on the Internet as a source of funding for home purchases. However, as a result of tracking the purchasers of miscellaneous goods by the National Tax Service, it was found that they were all acquaintances of Mr. A’s father. The money that his father remitted to his acquaintances flowed to Mr. A in the name of purchasing miscellaneous goods, thereby evading the gift tax. Mr. A was levied hundreds of millions of dollars in taxes from the National Tax Service.
B, who bought a number of apartments last year, mobilized an academy employee he runs to finance the purchase. They received more than 1 billion won of money from their spouse and made them deposit money into the employees’ accounts. The employees remitted this money to Mr. B, saying, “The salary has been deposited too much.” For the amount exceeding 600 million won, which is the range that can be donated between spouses without gift tax, Mr. B was to pay a surcharge.
There were also foreigners who bought expensive apartments with more than 10 households by bringing foreign funds into Korea through exchange (illegal foreign exchange transactions). Even though there was little economic activity, the IRS investigation team was caught by the IRS investigation team, who was suspicious of the process of being able to purchase multiple houses.
There was also a case where income from investment consulting related to real estate was reduced and reported. Mr. C, a representative of a large real estate brokerage firm, who made huge profits last year by insisting on “going out to buy a house” to viewers on YouTube is representative. He earned profits by opening paid lectures of hundreds of thousands of won per session related to investment in apartments and small buildings, but he did not report such income to the tax authorities. The National Tax Service decided to collect a fine of several hundred million won for corporate tax, comprehensive income tax, and non-issuance of cash receipts.
This year, businesses that run manufacturers and purchase apartments and shopping malls worth billions of billions of dollars with company funds, and rental businesses that received monthly rent from dozens of hagwon students by illegally renovating two buildings of famous academy towns have been subject to tax audits. “We will strictly respond to anti-social tax evasion that hinders the sincere tax atmosphere this year,” said Kim Tae-ho, head of the National Tax Service’s Asset Taxation Bureau. “We will strengthen verification of the source of funds acquired and repayment of debts related to real estate transactions.”
Reporter Noh Gyeong-mok [email protected]
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