Korea's NTS Chief Nominee Pledges To Tackle Tax Evasion

Korea's National Tax Service (NTS) Chief Nominee Han Seung-hee vowed to tackle tax evasion by multinational firms by ensuring successful implementation of comprehensive reporting system for international transactions. He also promised to strengthen investigations of "intelligent tax-dodging practices" of foreign multinationals, the local news reported.

Tax Dodging Practices

According to the newspaper, Kim has revealed his plans to regulate global IT giants and stop them abusing market dominance. "I will strengthen investigations of intelligent tax-dodging practices such as transfer mispricing and abuse of reduced tax rates," he said when asked over his views on multinational companies' offshore tax evasion and profit shifting.

Reporting System For International Transactions

Korea's NTS Chief Nominee said that the new rule on submission of international trade report, which acquires transaction information of multinational enterprises, is scheduled to take effect in December. “A comprehensive reporting system for international transactions by multinational firms will be implemented in December. So, the agency is currently preparing for the new system, such as guidelines of taxpayer report and details and establishment of electronic tax filing system,” he noted.

According to Korea Times, there are expectations that Han Seung-hee will synergize with the new Fair Trade Commission chief Kim Sang-jo in checking tax dodging practices of multinational enterprises.

VAT Reports & Tax Disputes

Han Seung-hee also said that the agency now properly manage value added tax reports on electronic services provided in other countries, including overseas app market transactions. This is due to changes implemented in July 2015. "I will also work on increasing the number of employees to manage international transaction reports and to draw a mutual agreement to resolve tax disputes,” he said.

Sources: Business Korea, The Korea Times
 

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