SEOUL, April 10 (Korea Bizwire) – Samsung Electronics Co. could be required to pay additional corporate taxes due to an accounting error, industry sources here said Monday.
The total that the tech giant may be ordered to pay has not been announced but sources said it could be a sizable sum, presumably more than 500bln Won, according to local news media.
National Tax Service (NTS) had been conducting its regular audit on the world’s leading smartphone and memory chipmaker and found differences in the way Samsung viewed its corporate expenses, which are exempt from taxation.
Industry insiders, without providing details, speculated that the sum Samsung may be required to pay could hit some 500 billion won (US$437.7 million). They said that while the company may have to pay more, it is not being accused of intentionally trying to avoid paying taxes.
“Samsung and the NTS seems to be interpreting the country’s tax law differently,” a local observer said. He said Samsung may take the matter to the National Tax Tribunal or to an administrative court.
Both the tax office and the Samsung declined to comment on the report and said that they do not discuss matters related to a tax audit.