Tax Disputes in Korea Jooheon Lee Partner at Yulchon LLC 2019 9 20 International Association of Korean Lawyers 2019 Annual Conference Seoul Periodic selection Companies with KRW 100 bil annual income or more every 5 ID: 768506
Download Presentation The PPT/PDF document "Tax Disputes in Korea" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Tax Disputes in Korea Jooheon Lee Partner at Yulchon LLC. 2019. 9. 20. International Association of Korean Lawyers2019 Annual Conference, Seoul
Periodic selection Companies with KRW 100 bil . annual income or more every 5 yrsSuspected to be non-compliant based on periodic compliance analysis Occasional selection Fails to fulfill his/her tax compliance obligations Suspected of false transactionsConcrete information on a taxpayer’s tax evasionEvident material to admit a suspicion of omissions or errors in tax returnTaxpayers bribing a tax official or helping a bribery 2 1. Tax investigation(when?)
Closing Request for early decision Request for Pre-assessment review ( 20 days) Notice of Tax Payment ( 30 days) ( 30 days)(exemption of penalty taxes)( 30 days) Review by NTEC Notice Notice on result 3 1. Tax investigation(procedure) Advance Notice (or Notice of tax investigation) Investigation (inspection of documents, inquiry, etc.)
1 . Tax investigation(Recent trend)4 Relevant Organization (FIU, FSS, etc) infra for information on overseas evasion heavier inspection Pool of experts on diverse areas systemization Training of investigation experts Deeper for Conglomerates Improvements of system No further negotiation Focusing on revenue hikes Additional burden Tax experts needed
Less cases , Heavier investigation Financial investigation, information from FIUIncreased seizure of account books and computersSimultaneous audit with trade partners or relevant companies Increased information Sharing of information inside investigation units Information exchange on overseas tax dodge(ex. MCAA) External informers like KCS, FTC, FSS Specialization Pool of experts on each field Experts on international audits or high-tech incl. computers Increased prosecution More complaints with prosecution against tax fraud accusers Increased filing for even simple non-compliance with tax return 5 1 . Tax investigation(Recent trend, cont’d)
Self-Assess/ Reporting/Payment Tax Imposition - adm decision<advance remedy> Judicial Relief Nat’l Tax – Doctrine of Exhaustion (cf. Local Tax) Administrative Relief NTS examination Tax Tribunal adjudication Board of Audit & Inspection examination 2. Dispute resolution procedures ▣ Overall structure 6
7 2. Dispute resolution procedures▣ Non-judicial reviewAppeal for review (NTS) (90 days)Request for Pre-assessment review(competent regional tax office ) Reconsideration appeal (competent regional tax office)Adjudgment request (Tax Tribunal) Examination request (BAI) Courts (filing in 30 days after preliminary notice & decision within 30 days) (filing within 30 days after notice of disposition & decision within 30 days) (filing within 90 days after notice of disposition or notice of reconsideration appeal decision & decision within 90 days )
Seoul Administrative Court Seoul High Court Courts handling tax litigations Special Panels or Divisions Seoul Adm Ct District Ct High Ct Supreme Ct (Tax Law Division ) 2 . Dispute resolution procedure ▣ Judicial review 8
9 2. Dispute resolution proceduresNo. of cases submitted No. of cases settledAcceptance ratio(%)Reconsideration appeal3,309 3,15924.4 Administrative reliefAppeal for review44045327.8Adjudgment request5,2375,116 27.3 Examination request 169 125 4.8Judicial relief1,4661,84211.4▣ Statistics(2017)
Thank you for your attention!