South Korea’s tax agency has launched investigations into bank accounts of high income earners on suspicion of tax evasion, officials said Sunday.
“We are investigating some tax evasion allegations as we have received tens of reports since the tax law revision,” said an official from the National Tax Service. “The results will come out soon.”
The tax law was recently revised to give rewards of up to 50 million won ($47,300) to those who report tax evading cases to the tax authorities. The reward system started in January this year.
NTS sees high income earners such as lawyers, tax accountants, doctors, dentists and golf club owners allegedly refuse to issue a receipt in order to avoid taxation, and have bank accounts with the name of their family members to deposit the money.
“They are highly likely habitual tax dodgers. We will impose a higher rate of tax on those tax evaders,” said the NTS official.
Those who are found to have evaded taxes must pay 50 percent of their under-reported revenues in penalty, with additional taxes, according to NTS.
“The new reward system will encourage taxpayers to report their exact income,” said the NTS official. (Yonhap News)
