"Ultra-High Amount Tax Delinquents Face Special Tax Audits"...NTS Launches Dedicated Task Forces for Comprehensive Crackdown

Dedicated Task Forces Established in Seoul Regional Tax Office

Simultaneous Investigation of Asset Concealment and Tax Evasion

The National Tax Service (NTS) has decided not only to track the assets of ultra-high amount habitual tax delinquents but also to investigate potential tax evasion through special tax audits. Dedicated task forces for these ultra-high amount delinquents will be established within specialized departments such as the Investigation Bureau 4 of the Seoul Regional Tax Office, which has expertise in special (ad hoc) audits. They will simultaneously verify both suspicions of asset concealment and tax evasion, thereby reinforcing measures against those deliberately refusing to pay large sums in taxes.

Recently, the NTS held a nationwide meeting of tax office chiefs at the Government Sejong Complex 2, where it announced the "National Tax Administration Operational Plan," with these measures as its centerpiece.

An NTS official stated, "For the first time, the NTS will establish a 'Delinquency Tracing and Tax Audit Coordination Task Force' within departments such as Investigation Bureau 4 of the Seoul Regional Tax Office, which handles ad hoc investigations. This team will simultaneously verify sophisticated asset concealment and tax evasion, thereby strengthening responses against malicious high-amount tax delinquents," adding, "By reinforcing the connection between delinquency tracing and tax audits, we aim to strictly enforce against sophisticated tax evasion by high-amount delinquents, identify concealed assets, and ensure the collection of all delinquent taxes."

One dedicated team will be set up in each of the Investigation Bureau 4 of the Seoul Regional Tax Office and Investigation Bureau 3 of the Jungbu Regional Tax Office, which handle ad hoc tax audits. Each team will consist of approximately seven members. These task forces will comprehensively conduct investigations, including asset tracing and coordinated delinquency disposition avoidance investigations for key high-amount delinquents in their jurisdiction, as well as irregular tax audits related to offshore tax evasion and corporate fund outflows.

The NTS also plans to encourage active citizen reporting in line with institutional changes to expand tax evasion whistleblower and concealed asset report incentives. Additionally, it will further strengthen anti-tax evasion infrastructure by introducing an additional virtual asset 'transaction tracing program' and upgrading forensic systems using artificial intelligence (AI).

In addition, in the latter half of this year, the NTS will operate a National Tax and Non-tax Revenue Delinquencies Management Unit comprising a total of 10,000 members to examine the actual state of delinquent amounts, which have accumulated to about 130 trillion won. Currently, 5,500 members (2,500 for national tax, 3,000 for non-tax revenue) began work last month, and an additional 4,000 will be deployed in October. Through customized investigations such as phone consultations (for minor delinquents) and on-site visits (for major delinquent cases or visit avoiders), the management unit will classify delinquents into categories: temporary financial hardship, intentional non-payment, and hardship due to livelihood, and will carry out appropriately tailored collection activities.

Particular focus will be given to tax investigations into actions arousing public resentment, such as real estate tax evasion involving low-price transfers or sham transactions to avoid heavier taxes on multiple-homeowners; tax evasion in the stock market including share price manipulation, dual listings, and price suppression; private use of ultra-high-priced residences and supercars as corporate assets; and profiteering from illegal acts targeting the general public.

The NTS also plans to devote efforts to innovation initiatives, such as advancing toward becoming an integrated fiscal revenue institution and undertaking a major AI-driven transformation of tax administration. Aiming at the full implementation of integrated non-tax revenue collection by 2027, the NTS will support the legislative process for the "Act on the Collection and Management of Non-Tax Revenue Delinquencies" to ensure its enactment within this year. From next year, the NTS will build a database of delinquents through direct investigations by the Management Unit, and will introduce an "Integrated Management System" to link all government agencies' non-tax revenue notices and delinquency information in real time with the NTS administration system.

NTS Commissioner Kwanghyun Lim stated, "Over the past six months, we have successfully carried out tax administration innovation tasks that began from feedback in the field," and added, "In the second half of the year, I urge all office chiefs to work together so that the NTS can drive innovation in national finance, ensure fair and just taxation, and support the great leap forward of the 'irreplaceable Republic of Korea.'"

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