Due to the economic downturn… Tax audits maintained below 14,000, ‘lowest ever’

The National Tax Service has decided to keep the scale of tax investigations this year below 14,000, similar to last year. Considering the sluggish economy, the policy is to refrain from investigating small and medium-sized taxpayers in principle. In contrast, the plan is to strengthen the investigation of tax evasion that threatens the lives of ordinary people, such as illegal private loans and stock price manipulation, and to thoroughly collect hidden assets from malicious large-scale delinquent taxpayers through planning analysis, etc.

On the 13th, the National Tax Service announced the ‘2024 National Tax Administration Operation Plan (Main Policy Implementation Plan)’ containing the above contents.

First, it was announced that the scale of tax investigations this year will be less than 14,000, similar to last year. The number of tax investigations last year was 13,992, the lowest since 2004 when related statistics began to be compiled. Tax investigations, which recorded 16,008 cases in 2019, are decreasing every year to 14,190 cases in 2020, 14,454 cases in 2021, and 14,174 cases in 2022.

We plan to initiate tax investigations on small and medium-sized taxpayers only when suspicions of evasion are clear, and focus our efforts on tax evasion that is closely related to everyday life, such as illegal private loans and unfair capital market transactions. We decided to take strict action against illegal tax evasion and intelligent offshore tax evasion by large corporations and wealthy individuals. To this end, the tax office task force that tracks malicious delinquents will be expanded from 19 to 25, and administrative sanctions will also be improved, including expanding the information subject to disclosure regarding delinquent delinquents.

Tax support for small business owners and self-employed people experiencing management difficulties will also be strengthened. The National Tax Service has decided to extend the payment deadline for each tax item and postpone seizures and sales for small and medium-sized businesses and small business owners. Accordingly, businesses whose value-added tax payment due date is extended by two months will also have their corporate tax and income tax payment due extended by three months. Seizure and sale measures for temporary non-payment are also suspended for up to one year.

Those subject to the value-added tax extension are 1.28 million people, including construction and manufacturing small and medium-sized enterprises with sluggish sales last year, and simple taxation businesses in the food, retail, and lodging industries with annual sales of less than 80 million won.

The National Tax Service also decided to pay value-added tax and corporate tax refunds to small businesses and export companies up to 20 days ahead of the legal deadline.

Kim Chang-ki, Commissioner of the National Tax Service, said, “This year, the National Tax Service will more actively support the recovery of people’s livelihoods, economic resurgence, and freedom of economic activity through warm and fair taxation in terms of taxation.” He added, “We will manage high-value lawsuits and delinquencies in detail and strictly, but delinquency for livelihood purposes.” “We will implement it in a dual way, including postponing asset sales,” he said.

Sejong = Reporter Ahn Yong-seong ysahn@segye.com

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