KCCI calls for reduced tax burden

The nation’s largest business community has called for easing tax audits and further deductions for corporate entertainment expenses.

In a lunch meeting with the National Tax Service Commissioner Lim Hwan-soo on Tuesday in Seoul, members of the Korea Chamber of Commerce and Industry said that the government should boost corporate investment by reducing the regulatory burden on legitimate business activities.

“In order for the Korean economy to make a new leap, it is crucial that corporates and the government work as a team,” said KCCI chairman Park Yong-maan.

He asked that the NTS pay extra caution in its tax audits so that the inspection would not intimidate the economic activities of corporates.
 

“The business circles will play their roles by bolstering the market economy and fulfilling their tax duties,” he said.

Chief tax officer Lim said that tax burdens will be eased for diligent taxpaying companies and small and medium-sized companies.

The NTS will continue to make administrative changes to make it easier for ordinary people to pay their dues, he added.

The KCCI also asked that the upper limit on corporate entertainment expenses be raised for larger companies.

Last year, the government increased the corresponding amount for SMEs from 18 million won ($15,920) to 24 million won, citing the need to expand their range of business activity.

“Adjustment should be made to reflect the price changes over the past years, especially as such spending can boost domestic consumption,” said the KCCI.

The day’s meeting was attended by the KCCI’s regional office chiefs, as well as members of the Seoul branch, including Hyundai Group chairperson Hyun Jeong-eun, Shinsegae vice chairman Chung Yong-jin and SeAH Group chairman Lee Soon-hyung.

By Bae Hyun-jung (tellme@heraldcorp.com)