Over­seas tax eva­sion ram­pant among com­pa­nies

The Korea Times - - FINANCE - By Lee Kyung-min [email protected]­re­atimes.co.kr

Nearly 18 per­cent of taxes levied on Korean in­di­vid­u­als and com­pa­nies op­er­at­ing abroad over the past five years re­mains un­col­lected, a law­maker said Thurs­day.

Ac­cord­ing to data sub­mit­ted from the Na­tional Tax Ser­vice to Rep. Kim Doo-kwan of the rul­ing Demo­cratic Party of Korea, of about 6.4 tril­lion won ($5.3 bil­lion) in over­seas tax du­ties im­posed be­tween 2014 and 2018, over 1.15 tril­lion won has yet to be col­lected.

By year, the tax agency im­posed a to­tal of 1.33 tril­lion won last year, up from 1.31 tril­lion won in 2017 and 1.28 tril­lion won in 2015.

Of the amount im­posed, 220 bil­lion won re­mained un­col­lected in 2018, 189 bil­lion won in 2017 and 169 bil­lion won in 2015.

The law­maker called for more strin­gent mea­sures to en­sure fair tax­a­tion, say­ing more peo­ple are sus­pected of en­gag­ing in so­phis­ti­cated tax avoid­ance and eva­sion.

“An in­creas­ing num­ber of peo­ple have evaded tax over the past years and the num­ber is ex­pected to rise,” the law­maker said.

“In­tense scru­tiny is re­quired to tar­get those who fail to re­port over­seas as­sets in­clud­ing fi­nan­cial ac­counts and real es­tate, as a grow­ing num­ber of peo­ple ex­ploit var­i­ous le­gal loop­holes to ex­empt them­selves from what should right­fully and equally be shared as their duty as Korean na­tion­als,” he added.

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