The NTS Big Data Center at the second government complex in Sejong. (Yonhap)
SEOUL, July 3 (Korea Bizwire) — Going forward, artificial intelligence (AI) and big data technology will be used in South Korea to select individuals subject to tax audits, the tax agency said Thursday.
The National Tax Service (NTS) announced that it will trial a big data analysis system for sorting out borrowed-name bank accounts this month.
The new system analyses the possibility of income manipulation through borrowed-name bank accounts by cross-referencing with the NTS’s tax invoice logs and other data and bank statements of borrowed-name accounts.
Potential tax evasion cases detected by the analysis system will be put into consideration when selecting individuals for tax audit.
Last July, the NTS established a big data center to develop a scientific and effective tax administration system.
The center’s financial transaction analysis system is already being used as surveillance for tax evasion, identifying highly suspected cases of offshore tax evasion, such as receiving export bills under borrowed names or circumvented transfer of overseas investment returns, by analyzing foreign currency transactions.
Big data analysis will also be used to support tax administration.
The NTS plans to analyze taxpayers’ credit card statements through big data analysis to estimate sales and purchases over the following three months, and notify the staff of a taxpayer’s possible shortage of funds.
Kevin Lee (kevinlee@koreabizwire.com)
