Suwon City Collects 6.9 Billion Won in Taxes Through Regular Tax Audits This Year

[Suwon Ilbo=Reporter Seo Dong-young] Suwon City announced on the 16th that it collected 6.9 billion won in taxes through regular tax audits conducted this year.

The city selected 150 corporations subject to regular tax audits for 2020 following a review by the 'Suwon City Local Tax Deliberation Committee' in February. It completed audits of 147 corporations by the 15th.

The Local Tax Deliberation Committee selected this year's audit targets by evaluating ▲good faith analysis (corporations suspected of false reporting) ▲corporations not audited within four years ▲sample audits (corporations in the top 50% of tax base acquisition by major industry, property use, and acquisition type) ▲carryover corporations (corporations from 2019 audit targets that were not audited).

In addition to audits of the target corporations, special audits were conducted on 32 counterparty corporations that had transactions with the audit targets, totaling 179 corporations audited and 6.9 billion won collected.

The collected taxes were mostly due to ▲omission of taxable base resulting from taxpayers' lack of understanding of local tax laws and legal interpretation errors ▲failure to apply additional taxation for large cities ▲unreported deemed acquisition between controlling shareholders ▲unreported resident tax (property portion) ▲unreported local income tax (special withholding).

A city official stated, "Although this year's audits were conducted through document reviews rather than on-site inspections due to COVID-19, corporate awareness of regular tax audits has improved, and most corporations actively cooperated with the tax audits. Based on regular tax audits, we will work to prevent tax revenue leakage, realize fair taxation, and contribute to strengthening local finances."