Gyeonggi-do Investigates 37 Agricultural Corporations for Local Tax Evasion

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province is conducting investigations into 37 agricultural corporations suspected of local tax evasion.

On the 29th, Gyeonggi Province announced that it is investigating 37 agricultural corporations suspected of abusing the current agricultural real estate-related system that grants acquisition tax exemptions, receiving tax reductions, and then reselling the property without adhering to the mandatory usage period to gain unfair profits.

Earlier, in February, the province conducted a full survey on acquisition tax exemptions over the past five years targeting a total of 27,493 agricultural corporations in the province. As a result, 184 corporations were found to have sold land without observing the mandatory usage period of three years despite receiving acquisition tax exemptions. Among these, 37 corporations suspected of local tax evasion are the subject of the current investigation.

Considering the COVID-19 situation, the province is conducting written investigations on the relevant corporations. By the 28th of this month, 15 corporations were investigated, and among them, two cases of violations were detected, resulting in the collection of approximately 21 million KRW in local tax arrears.

For example, Agricultural Cooperative Corporation A, located in Gangwon Province, was established in 2011 for the purpose of cultivating wild ginseng. In 2015, it acquired forest land in Pyeongtaek, Gyeonggi Province, and despite the mandatory three-year usage period, it resold the forest land within the same year to evade taxes. This was detected in the current investigation, and the corporation fully paid 10 million KRW in arrears.

Agricultural Company B, located in Yangpyeong, was established in 2015 and acquired farmland for sprout cultivation, receiving acquisition tax exemptions. Later that year, it sold part of its shares, and after the investigation into local tax evasion began, it paid 10 million KRW in arrears.

If local tax evasion charges are found, under Article 102 of the Local Tax Basic Act, offenders may face imprisonment of up to two years or fines.

Lee Ui-hwan, Director of the Tax Justice Division of the province, emphasized, "This investigation is the first by a metropolitan local government targeting agricultural corporations that evade local taxes by abusing the Local Tax Special Cases Restriction Act. Through this full survey scheduled until the end of June, we will thoroughly investigate delinquent corporations, enforce strong penalties, and realize fair tax justice."

This content was produced with the assistance of AI translation services.