Tax authorities explained that the increase in whistleblowing and additional tax collection were the result of an increase in the compensation cap for whistleblowing to 2 billion won from 1 billion won. (image: Yonhap)
SEOUL, March 10 (Korea Bizwire) – Thanks to the increased tip-offs on tax evasion, the national tax service was able to collect and additional 1.5 trillion won (US$1.33 billion) last year. Also, it imposed 240 billion won in taxes thanks to borrowed-name bank account reports during the year.
The National Tax Service announced on March 9 that the number of whistleblowing occurrences related to tax evasion increased 3.6 percent to 19,442 cases last year, and resulted in the collection of 1.53 trillion won, for a 15.8 percent increase.
In addition, the tip-offs of borrowed-name accounts increased 37.6 percent to 12,105 cases, which allowed the tax service to impose 243 billion won in additional taxes.
Tax authorities explained that the increase in whistleblowing and additional tax collection were the result of an increase in the compensation cap for whistleblowing to 2 billion won from 1 billion won.
Meanwhile, the tax office’s efforts to raise citizen’s awareness of tax evasion by appointing 986 experts and ordinary people as “tax guards” also played a role in reducing tax evasion.
This year, it will raise the maximum compensation cap to 3 billion won to urge more individuals to disclose illicit activity, and will also prepare other measures to protect whistleblowers.
By John Choi (johnchoi@koreabizwire.com)
