[2026 National Assembly Audit] Repeated Tax Litigation Losses Against Big Tech... NTS Chief: "Will Respond to Protect Tax Sovereignty"

National Tax Service Commissioner Lim Kwang-hyun said on October 12, regarding a string of losses in tax disputes with foreign big tech companies, "This is an issue that would be resolved if measures such as a digital tax were introduced, but the United States is currently opposed. The situation is difficult, but we will do everything we can to protect our tax sovereignty."

Lim made the remarks that morning in response to a question from Kim Taenyeon of the Democratic Party of Korea about the National Tax Service's response to the issue during a parliamentary audit by the National Assembly's Finance and Economy Planning Committee. "Global IT companies seek to avoid paying corporate taxes in the countries where they operate by not establishing a place of business there. This is not a problem unique to us," he said.

Kim asked, "In May this year, Google Korea partially won a 150 billion won lawsuit in the second trial, while Meta also won a 200 billion won lawsuit. Were the losses due to limitations in the law or problems with proving the case?"

Lim said, "This is not a problem unique to us; tax authorities in other countries are facing the same issue. The National Tax Service imposes taxes by applying various legal arguments, including those concerning permanent establishments and deemed permanent establishments. Our arguments are accepted through the tax tribunal stage, but the courts seem to reach different conclusions."

Kim said, "This is not an issue that can be resolved simply by working hard; institutional improvements seem necessary. It is a matter that should be discussed among the relevant ministries and with the National Assembly."

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