Gyeonggi Province Recovers 99.9 Billion Won Through 2024 Tax Audit on Acquisition Tax and Others

[Suwon Ilbo=Reporter Kim Gap-dong] Gyeonggi Province announced on the 9th that through intensive tax audits conducted last year on corporations that underreported real estate local taxes or improperly received tax exemptions, it collected a total of 99.9 billion won from 3,575 corporations.

By tax category, the recovery breakdown is as follows: △acquisition tax and other provincial taxes 85.8 billion won (86%) △property tax and other municipal taxes 10.4 billion won (10%) △national tax 3.7 billion won (4%).

The province conducted joint tax audits by provincial and municipal authorities on 89 corporations selected through the 2024 Local Tax Deliberation Committee, recovering 46 billion won. The audit subjects were corporations that acquired real estate valued at 5 billion won or more or received tax exemptions or refunds of local taxes amounting to 100 million won or more. In addition to joint tax audits, municipal-level independent investigations recovered 53.9 billion won.

For example, Corporation A, a large-scale land development project operator, omitted various charges and infrastructure construction costs related to land classification changes and reported the land development cost lower than actual, resulting in recovery of 19.2 billion won in acquisition tax and others.

Corporation B, which filled public waters and has been using the land in practice, omitted related direct and indirect costs, leading to recovery of 1.8 billion won in acquisition tax.

Corporation C obtained a tax exemption for acquiring a data center (IDC) expansion within an industrial complex but operated it by housing servers and management personnel from other corporations at the property, resulting in recovery of 4.1 billion won in local taxes.

Corporation D established a hospital within the overconcentration restriction zone and conducted its decision-making and core business operations at the hospital. While this qualifies as real estate acquired for principal office use, the joint tax audit confirmed that Corporation D did not report or pay the additional tax, resulting in recovery of 400 million won in local taxes.

The province plans to expand tax audits on land development projects, urban development projects, and redevelopment and reconstruction projects, identified during last year's tax audit process, throughout this year as well.

Noh Seung-ho, head of the Tax Justice Division, stated, "We are focusing on preventing leakage of local taxes and strengthening the foundation for fair taxation through regular tax audits," and added, "Going forward, we will continue to develop the expertise of tax audit personnel and conduct transparent and fair tax audits."