South Korean tax authorities plan to step up
efforts to curb offshore tax evasion next year by tightening inspections on asset outflows and overseas slush funds, sources said Sunday.
"With the strengthened infrastructure for investigations, the state tax office intends to track down more than 1 trillion won (US$880 million) in evaded taxes and impose penalty tax on omitted offshore income," said an official at the National Tax Service (NTS).
The plans will be briefed to President Lee Myung-bak during a report Tuesday on NTS' goals for next year, the official added.
As part of its efforts to stem illegal tax practices, the NTS plans to dispatch investigation officers to four global financial hubs, including Hong Kong, the sources said. Officers are also likely to be sent to cities
largely populated by Korean citizens and corporations, such as Shanghai, China.
The NTS plans to collaborate with other governmental agencies to establish a permanent organization that oversees offshore tax evasions, the sources said.
The NTS also intends to intensify international efforts, such as launching cooperative investigations and sealing agreements on financial transaction data exchanges with overseas tax agencies, the sources said.
In 2009, the government uncovered 622 billion won of omitted overseas income and imposed 339 billion won as penalty taxes.