Korindo head probed for alleged tax evasion
By Jung Min-ho
Seung Eun-ho
Chairman of Korindo Group
Prosecutors are investigating allegations that the head of Korindo Group, a Jakarta-based conglomerate, and his sons have evaded taxes.
The Seoul Central District Prosecutors’ Office said Monday that the group’s Chairman Seung Eun-ho and his two sons are suspected of evading payment of 50 billion won ($47 million) of taxes while doing business in Korea and Indonesia.
The National Tax Service (NTS) first investigated the case and referred it to the prosecution in April, the office said.
Founded in Jakarta in 1969, Korindo developed into a major business group in Indonesia. The company has some 30,000 employees and more than 30 affiliates worldwide, which are engaged in paper production, heavy industries, financing, real estate, chemicals and logistics.
According to the prosecution, Seung, a Korean citizen, and his sons allegedly used a paper company set up in an overseas tax haven with the names of other people in order to avoid paying taxes in Korea. Seung reportedly claimed that he has no reason to pay taxes in Korea because he is currently not a resident. The NTS, however, believe that they stayed in Korea for more than one year during the past 2-year taxation period, so they are obliged to pay taxes in accordance with Korean law.
A prosecutor said that the investigation team is examining how long Seung stayed in the country during this period. The official noted that the investigation team has not yet summoned Seung for questioning.
“We will conduct the probe into these allegations in accordance with related procedures,” the official was quoted as saying.
According to the NTS, it examined the Korindo case as part of a broader investigation into offshore tax evasion perpetrated by South Koreans.
Last year, the NTS collected more than 1 trillion won from 221 offshore tax evasion cases, up from 825 billion won from 202 cases in 2012. In 2008, 150 billion won from 30 cases was recovered.
Korindo head probed for alleged tax evasion
By Jung Min-ho
Seung Eun-ho
Chairman of Korindo Group
Prosecutors are investigating allegations that the head of Korindo Group, a Jakarta-based conglomerate, and his sons have evaded taxes.
The Seoul Central District Prosecutors’ Office said Monday that the group’s Chairman Seung Eun-ho and his two sons are suspected of evading payment of 50 billion won ($47 million) of taxes while doing business in Korea and Indonesia.
The National Tax Service (NTS) first investigated the case and referred it to the prosecution in April, the office said.
Founded in Jakarta in 1969, Korindo developed into a major business group in Indonesia. The company has some 30,000 employees and more than 30 affiliates worldwide, which are engaged in paper production, heavy industries, financing, real estate, chemicals and logistics.
According to the prosecution, Seung, a Korean citizen, and his sons allegedly used a paper company set up in an overseas tax haven with the names of other people in order to avoid paying taxes in Korea. Seung reportedly claimed that he has no reason to pay taxes in Korea because he is currently not a resident. The NTS, however, believe that they stayed in Korea for more than one year during the past 2-year taxation period, so they are obliged to pay taxes in accordance with Korean law.
A prosecutor said that the investigation team is examining how long Seung stayed in the country during this period. The official noted that the investigation team has not yet summoned Seung for questioning.
“We will conduct the probe into these allegations in accordance with related procedures,” the official was quoted as saying.
According to the NTS, it examined the Korindo case as part of a broader investigation into offshore tax evasion perpetrated by South Koreans.
Last year, the NTS collected more than 1 trillion won from 221 offshore tax evasion cases, up from 825 billion won from 202 cases in 2012. In 2008, 150 billion won from 30 cases was recovered.
