Reducing Business Burden and Enhancing Taxpayer Convenience... Gunsan City Uncovers 703 Million Won in Unreported Tax Sources

Reducing the Burden by Expanding Audit Timing Options and Non-Face-to-Face Services

Gunsan City in Jeonbuk has strengthened its foundation for fair taxation by uncovering 703 million won in unreported local tax sources through local tax audits conducted in the first half of this year. At the same time, the city implemented tax policies aimed at reducing the burden on businesses, such as operating a system that allows companies to select the timing of their audits and expanding non-face-to-face services.

A view of Gunsan City Hall in Jeonbuk.

According to Gunsan City on July 15, a total of 4,200 tax audits were conducted in the first half of the year, resulting in 291 cases of tax omissions identified.

The regular tax audits uncovered underreported acquisition taxes on large buildings amounting to 182 million won, along with 96 million won for improper use of real estate that had received tax reductions.

In case-specific and planned audits, the city discovered a range of unreported taxes, including 86 million won in unreported acquisition taxes on buildings, 78 million won in unreported inheritance property acquisition taxes, and 56 million won in post-management oversight relating to exceptions for heavy taxation on corporate-owned houses.

In total, these efforts secured 703 million won in previously unreported tax sources. Additionally, by providing notifications for reporting and payment of acquisition taxes by majority shareholders, the city promoted voluntary tax reporting, resulting in roughly 900 million won in self-declared taxes, helping to foster a culture of faithful tax compliance.

Gunsan City emphasized that this tax audit initiative was not merely about collecting more taxes but was operated with a focus on prevention, aiming to protect corporate rights and encourage voluntary and faithful tax payment practices.

The 'audit timing selection system' was applied to 50 corporations, enabling businesses to avoid audits during peak management seasons or major project periods. By allowing companies to adjust the audit schedule themselves, the city has reduced operational disruptions and improved predictability regarding tax audits.

Services were also expanded to enhance taxpayer convenience. The city produced and distributed a local tax audit guidebook for businesses and introduced a non-face-to-face tax audit service using QR codes, simplifying notification and data submission processes. During the first half of the year, the QR code service was used 83 times and related website material inquiries reached 1,565, demonstrating high engagement.

Recently, local governments have been moving away from traditional audit-focused practices in favor of notification-based administrative services and digital-driven approaches to encourage voluntary tax declaration by taxpayers. Gunsan City's latest policy is aligned with this trend, reflecting a shift toward tax administration that both reduces administrative burdens on businesses and upholds fair tax order.

In the second half of the year, Gunsan City plans to continue with regular, case-specific, and planned tax audits, as well as conduct joint audits with Jeonbuk Special Self-Governing Province, in order to realize fair taxation and tax justice.

An official from Gunsan City stated, "Tax audits are an administrative process aimed at establishing a fair tax order in which businesses and citizens who comply are respected," adding, "We will continue to promote business-friendly tax administration that protects corporate rights and alleviates management burdens."

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