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Tax service plans to cut back on audits in 2018

Jan 03,2018
Han Sung-hee, head of the National Tax Service, said the government will gradually cut back on tax audits this year in order to focus on intentional tax dodging committed by conglomerates, the rich and high-income earners.

“The taxation administrative work has to be reorganized to meet the demands of changing times,” said Han on Tuesday during his New Year’s speech. “Considering how honestly businesses file their taxes, we will gradually cutback on the number of audits.”

Han noted that the tax agency will use the latest IT technologies to provide better customized taxation reports that encourage more people and businesses to make honest voluntary tax reports.

“With the revolution of IT technologies, new types of transactions continue to be introduced,” Han said. “We have come close to an opportunity where we can make taxation policy scientific through big data analysis.”

However, the NTS chief was steadfast on cracking down on intentional tax dodgers with the help of experts.

“We have to create a legal and systematic environment where repeat tax dodgers that not only disrupt taxation law but also the overall unification of society will have no place,” Han said. The tax agency will further strengthen its capacity in international transaction, capital transaction and taxation lawsuits.

He also stressed that the tax agency aims to regain the public’s trust.

“Last year was a year for the tax agency to look back at its past,” Han said. “It was a decision made in regaining the public’s trust. And this year it is time for us to prepare for a new future that overcomes our past.”

The NTS under the Moon Jae-in administration last year created a task force that voluntarily disclosed some past tax audits considered to be an abuse of power for political purposes.


BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]