Tax agency to crack down on 36 tax evaders

[THE INVESTOR] South Korea will start an intensive investigation targeting dozens of individual and corporate offshore tax evaders who did not voluntarily pay taxes, the National Tax Services said on June 15.

The NTS, the country’s tax authority, said that some 36 people are subject to the probe, including three or four suspects who hid assets in tax havens and were listed in the leaked files known as the Panama Papers. 

The crackdown comes as a six-month grace period offered by the tax agency ended in March.

The authority encouraged those who have not reported their overseas incomes or assets to voluntarily pay taxes, offering to exempt them from additional taxes and penalties, and saying that their tax-evasion charges will be treated leniently during the period.

“We have selected individuals and corporates with heavy tax fraud charges by analyzing NTS’ accumulated data,” an NTS official said.

The NTS said it will seek international cooperation regarding the possible tax evaders who were found to have established paper companies using Panama-based law firm Mossack Fonseca.

By Park Han-na (hnpark@heraldcorp.com)