The tax revenue collected by company audits has been on the rise for the past three years, the National Tax Agency said in a report on Wednesday.
Last year, the NTS collected an extra 7 trillion won (6.3 billion) through tax crackdowns, which takes up about 3.6 percent of the country’s total tax revenue, according to the report to ruling Saenuri Party lawmaker Kim Tae-ho.
The report revealed that the majority 70.4 percent of this extra tax, or 4.9 trillion won, came from auditing companies. The second-largest payers were self-employed businesspeople, comprising about 12.2 percent.
While last year’s annual tax collected through auditing increased from the year before, the number of companies audited decreased during the same period ― meaning the NTS has focused on collecting from select higher-earning companies.
Such a move by the tax agency enraged some foreign companies that were “unexpectedly” struck with additional tax payment.
Local card companies that give services in partnership with VISA and Master Card, are preparing administrative litigation following an order from tax authorities to pay more profit-gain taxes, financial sources said last week.
“When the government orders companies to pay unpaid tax, they eventually obey to avoid further trouble,” a financial authority said.
By Chung Joo-won (
joowonc@heraldcorp.com)
