Government to Review Requiring Taxpayers to Report Tax Consulting

The government will look into compelling taxpayers to report to authorities if they receive consulting to reduce their tax obligations.

The Ministry of Strategy and Finance said Sunday that it will review the measure as a follow-up to the Base Erosion and Profit Shifting program approved at last month’s Group of 20 (G20) summit.

Under the so-called “compulsory reporting system” taxpayers would be required to report to tax authorities if they develop financial products that receive tax benefits or receive consulting to reduce their taxes.

The G20 and the Organization for Economic Cooperation and Development have recommended that members electively introduce the system.

South Korea plans to make a decision after reviewing its administrative capacity and the impact on corporations. The measures are already being implemented in the U.K. and the U.S.