Seoul to crack down on tax evasion by big firms, individuals

South Korea's tax agency said Friday it will crack down on tax evasion by big businesses and wealthy individuals to boost its tax revenue.

The National Tax Service plans to thoroughly look into possible capital outflows by high-income earners and conglomerates and check moves to pass on managerial control of firms without paying related dues, the NTS said in the documents produced for the parliamentary audit.

Tax evasion, the practice of deliberately attempting to get by without paying taxes, is definitely illegal. However, it is assumed by many that some companies and wealthy individuals have used overseas tax havens to avoid paying dues.

Meanwhile, the tax agency plans to allow mom and pop shops to be exempt from taxes by up to 30 million won if they go bankrupt, the documents said.

The NTS collected 182.9 trillion won as of the end of August, achieving 76 percent of this year's tax revenue target of 240.8 trillion won. (Yonhap)