Tax Office Investigating Individuals, Corporations for Offshore Tax Evasion Allegations
The National Tax Service has launched an investigation into 104 individuals and corporations suspected of offshore tax evasion.
The National Tax Service of South Korea launched an investigation targeting 104 individuals and corporations suspected of offshore tax evasion. The number is likely to increase over time.
The targets include Orion Holdings and Hyundai Department Store. Orion was subject to a tax investigation in 2010 and 2015. Another investigation has been initiated in four years whereas the National Tax Service’s regular tax investigation is conducted every five years in most cases. It is said that this is because the company is suspected of offshore tax evasion. Earlier, Orion had to pay a penalty of billions of won in 2015 due to tax omission in relation to intra-company transactions.
The investigation targeting Hyundai Department Store is regarded as a regular rather than in-depth investigation. The National Tax Service looked into the company in 2011 and 2015. The company refused to mention anything about the ongoing investigation.
Orion admitted that it underwent a tax investigation early this month and mentioned nothing about its offshore tax evasion allegations.