National Tax Service strengthens asset tracking investigation
A bundle of cash was found in a kimchi container at the home of a high-value delinquent who had embezzled a large amount of capital gains tax. [사진 국세청]
Senior citizen A (92) did not pay billions of won in capital gains tax even though he transferred his own land. It turned out that Mr. A’s children evaded forced collection by systematically hiding the entire transfer amount, excluding bank debt, by transferring it to several accounts or withdrawing cash.
National Tax Service employees, who confirmed this through closed-circuit television (CCTV), confirmed after interrogation and undercover that Mr. A was actually residing in a house under his child’s name, and jointly searched four addresses. As a result, a total of 1.1 billion won was collected, including 200 million won worth of cash bundles of 50,000 won bills hidden in a kimchi container at home, and 7 family members, including Mr. A’s children and daughter-in-law, were reported.
The National Tax Service announced on the 21st that it will strengthen its asset tracking investigation on 696 unscrupulous large delinquent taxpayers who hide their assets using intelligent techniques or lead luxurious lifestyles without paying taxes despite their ability to pay. The National Tax Service collected 2.5 trillion won in cash or secured bonds as of October this year through asset tracking investigations.
First, the National Tax Service detected 216 delinquents who, without paying taxes, hid their assets through various methods, such as winnings from gambling games such as horse racing, bicycle racing, and slot machines, overseas insurance, and large checks. Mr. B, a urologist who did not pay billions of won in comprehensive income tax, subscribed to insurance through an overseas insurance company under his spouse’s name and hid his assets by remitting premiums in foreign currency several times. The National Tax Service is conducting financial inquiries on delinquent taxpayers and their families to trace assets, while also searching actual residences and hiding places.
81 people were also confirmed to have illegally transferred property through false provisional registration and mortgages. Mr. C, a dentist, set up a provisional registration of his real estate in his spouse’s name to avoid compulsory collection due to billions of won in arrears, and when it was seized by the jurisdiction, he converted it to a main registration and transferred ownership to his spouse. In addition, he closed his own business immediately after delinquency occurred and then reopened the business under the same name and in the same location under the name of an employee. Even though they had delinquent taxes, 399 delinquents were caught who directly leased and used imported luxury cars such as Rolls-Royce or leased vehicles under the company’s name. There were also cases where large amounts of foreign currency were sent overseas without paying taxes in the name of funding for children’s education abroad.
Ahn Deok-soo, head of the National Tax Service’s tax collection legal department, said, “He is a delinquent who seriously hinders the establishment of a mature tax payment culture by creating a sense of incongruity among sincere taxpayers and causing a sense of disappointment in the majority of the public. Meanwhile, we are carrying out intensive on-site collection activities, including interrogating, hiding, and searching locations suspected of hiding assets, including the actual residence and workplace of delinquents.”
In addition, the National Tax Service is strengthening compulsory collection by collecting income data on high-income freelance delinquent taxpayers such as YouTubers, copyright holders, and instructors. In particular, we will quickly seize and collect from platform operators the continuous income received by YouTubers, such as Super Chat (viewer donations), and track delinquents suspected of transferring or hiding virtual assets in the name of relatives using a virtual asset tracking program. plan. Recently, it achieved success by confiscating 28.7 billion won from a delinquent who hid his assets in virtual assets such as Bitcoin.
Director Ahn said, “In the future, the National Tax Service will continue to respond quickly to asset concealment practices that are becoming more sophisticated and will track and collect hidden assets of high-value and habitual delinquent taxpayers to the end.”
Sejong = Reporter Na Sanghyeon na.sanghyeon@joongang.co.kr
Here are two PAA-related questions based on the provided text:
## World Today News Presents: Unmasking Tax Evasion
**Welcome back to World Today News. Today, we delve into the complex world of tax evasion and the sophisticated methods used by delinquents to hide their assets. We are joined by two esteemed guests:**
**Dr. Emily Chen:** A renowned economist specializing in tax policy and evasion patterns.
**Mr. Mark Lawson:** A former investigator for the Federal Tax Authority with extensive experience in asset tracing and recovery.
**
I. The Growing Concern of Tax Evasion**
**Host:** Dr. Chen, the article highlights a significant increase in sophisticated asset concealment techniques. Can you shed some light on the contributing factors behind this trend?
**Dr. Chen:**
**(Open-ended discussion point: Potential reasons for rise in tax evasion. Explore socioeconomic factors, global trends, evolution of financial systems, etc.)**
**Host:** Mr. Lawson, from your experience investigating these cases, what are some of the most common red flags that indicate potential tax evasion? How has technology both aided and complicated the process of asset tracing?
**Mr. Lawson:**
**(Open-ended discussion point: Real-world examples of evasion strategies. Discuss the evolution of technology’s role in both facilitating and combating evasion.) **
**II. The Cases Unveiled**
**Host:** The article details fascinating cases involving individuals using methods like hidden cash, overseas insurance, and even virtual assets to evade taxes. Dr. Chen, what implications does this have on the fairness and effectiveness of our tax system?
**Dr. Chen:**
**(Open-ended discussion point: Broad societal impact of tax evasion. Discuss trust in institutions, inequities, and potential consequences for public services.) **
**Host:**
Mr. Lawson, how crucial are cases like those presented in the article in deterring future tax evasion attempts? What message do they send to individuals who might be considering similar tactics?
**Mr. Lawson:**
**(Open-ended discussion point: The deterrent effect of high-profile cases. Discuss the balance between punishment and rehabilitation in tackling tax evasion.)
**III. Countering Evasion: A Collaborative Effort**
**Host:** Dr. Chen, what role do governments and tax authorities play in staying ahead of increasingly sophisticated evasion techniques?
**Dr. Chen:**
**(Open-ended discussion point: Strategies for governments and tax authorities to effectively counter evolving evasion tactics. Discuss international collaboration, technological advancements, and policy changes.) **
**Host:** Mr. Lawson, beyond legal repercussions, what other measures can incentivize tax compliance and promote a culture of responsible tax payment?
**Mr. Lawson:**
**(Open-ended discussion point: The importance of public awareness campaigns, educational initiatives, and building trust between taxpayers and authorities.)**
**
IV. Looking Ahead**
**Host:** As we conclude, I’d like to ask both of you for your insights on the future of tax evasion.
Dr. Chen, do you foresee a future where evasion becomes more easily detectable due to advancements in technology and data analysis?
**(Open-ended discussion point: The role of AI, big data, and predictive analytics in tax collection.)
**Host:** Mr. Lawson, what advice would you offer to both individuals navigating the complexities of the tax system and policymakers looking to create a more robust and equitable system?
**(Open-ended discussion point:
Final remarks and takeaways for viewers. Promote responsible citizenship and encourage further discussion on the topic.)
