Gyeonggi Province Blocks 206 High-Arrears Local Tax Delinquents from Leaving Country

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province has confirmed a list of 206 high-arrears local tax delinquents (in acquisition tax, resident tax, local income tax, etc.) who risk evading collection measures by illegally using others' identities or fleeing overseas, and has requested the Ministry of Justice to issue exit bans.

According to Gyeonggi Province on the 28th, the province investigated 8,586 individuals with local tax arrears of 30 million won or more since September, examining valid passport possession, foreign currency transaction records, and overseas entry/exit records, ultimately identifying 206 exit ban request targets, including 187 new requests (9 foreigners) and 19 extension requests.

According to the Local Tax Collection Law and the Immigration Control Act, the provincial governor can request exit bans from the Ministry of Justice after receiving names of targeted individuals from cities and counties.

The exit ban period is six months for South Korean nationals and three months for foreigners, with the possibility of extension if necessary.

In notable cases, a foreigner identified as "A" lived in a luxury residence valued at 1.2 billion won under his wife's name while failing to pay 100 million won in local income tax.

Over the past 15 years, "A" had traveled overseas 43 times, his wife 33 times, and their child 28 times, presenting a clear possibility of fleeing abroad without paying taxes at any time, leading to inclusion on the exit ban list.

"B" resigned as CEO of Corporation "C" in 2018 after a wage garnishment notice was sent, subsequently transferring the CEO position to his child to evade collection measures.

A subsequent investigation of foreign currency transaction records revealed that overseas remittances exceeded 273,000 US dollars, and records showed "B" and his child traveled abroad frequently between 2014 and this year, resulting in inclusion on the exit ban list.

"D" lived in a property registered under his older brother's name while failing to pay 350 million won in local income tax.

Over the past two years, he traveled overseas eight times and remitted over 50,000 dollars abroad, with evidence suggesting he was operating a business under false names, leading to inclusion on the exit ban list.

Choi Won-sam, director of Gyeonggi Province's Tax Justice Division, stated, "Unlike domestic delinquents, foreign high-arrears taxpayers are difficult to track once they leave the country, making tax collection virtually impossible," and added, "We will continue to take strong measures against foreign high-arrears delinquents who undermine the atmosphere of tax compliance and will do our utmost to ensure that tax evasion is not tolerated in Gyeonggi Province."

Meanwhile, the province plans to regularly investigate foreign remittance records and overseas assets next year, requesting exit bans for individuals deemed to have a risk of evading collection measures after traveling overseas.

Additionally, the province will implement swift measures for those who meet the conditions for exit ban cancellation, such as paying their arrears, to prevent undue infringement of rights.