Lim Kwang-hyun, right, commissioner of the National Tax Service, poses with Ferenc Vagujhelyi, commissioner of the Hungarian National Tax and Customs Administration, in Budapest, May 8, after the two sides signed a memorandum of understanding on mutual assistance in tax collection. Courtesy of National Tax Service
National Tax Service (NTS) Commissioner Lim Kwang-hyun visited three European countries to bolster cross-border tax collection cooperation aimed at recovering overseas assets concealed by delinquent taxpayers, marking an expansion of Korea’s enforcement network from the Asia-Pacific region into Europe, the NTS said Thursday.
During his tour from May 8 through May 13, Lim visited Budapest in Hungary, Brussels in Belgium and London in the United Kingdom, where he held bilateral meetings with the heads of each tax authority and signed memorandums of understanding on mutual assistance in tax collection.
Lim also engaged in detailed discussions with his counterparts on ongoing efforts to trace and recover overseas assets, as well as on joint responses to offshore tax evasion cases.
In one case, a foreign professional athlete who had worked in Korea moved to a European league after leaving unpaid taxes behind. Following the NTS’ request for mutual assistance in tax collection, the foreign tax authority initiated procedures to seize the taxpayer’s assets in the individual’s home country.
Lim explained the legal grounds supporting Korea’s enforcement claim to the counterpart tax authority and called for swift and active cooperation in the tax recovery process.
Another case involves a domestic taxpayer publicly identified as a high-value habitual tax delinquent, who has allegedly continued business operations overseas for years under borrowed names while failing to settle outstanding taxes.
In response, Lim called for the prompt exchange of tax information between the relevant authorities regarding the delinquent taxpayers and suspected offshore tax evaders, while also discussing the possibility of conducting simultaneous tax investigations when necessary.
Under simultaneous tax investigations, tax authorities in each jurisdiction cooperate by exchanging relevant tax information obtained during their own investigations that may assist the counterpart authority.
“Such joint investigations are expected to help foreign authorities identify concealed overseas assets, enabling Korea to seek mutual assistance in tax collection and recover delinquent taxes,” an NTS official said.
Source: Korea Times News
