NTS imposes 1 tln won in taxes through probe into offshore tax evasion

SEOUL, Feb. 17 (Yonhap) — South Korea’s tax agency said Monday that it imposed more than 1 trillion won (US$944.3 million) in taxes last year through an investigation into offshore tax evasion.

A total of 1.08 trillion won was imposed as a result of its offshore tax evasion probe last year, which is a 30.6 percent rise from 2012, according to the National Tax Service (NTS). This also marked the first time that the amount surpassed the 1 trillion mark.

The NTS said that it probed 211 people suspected of evading taxes through diverse methods including establishing paper companies in tax havens.

The agency is intensifying its crackdown on tax evaders, especially those concealing money by using offshore paper companies.

In June, the NTS, along with its counterparts in the United States, Britain and Australia, conducted a joint investigation into offshore paper companies and secured a large amount of tax-related data, which led the agency to dozens of tax evaders.

The stepped-up crackdown is in line with the government’s efforts to establish fair taxation rules and expand the overall revenue base at a time when it needs to meet growing fiscal demand from more social welfare programs being pushed by President Park Geun-hye.

Credit: Global Post