Suwon Special City to Implement 'Local Tax Audit Timing Selection System' from March

[Suwon Ilbo=Reporter Jung Jun-sung] Suwon Special City announced on the 25th that it will implement the ‘Local Tax Audit Timing Selection System,’ which was introduced last year and received positive responses, from March this year as well.

The Local Tax Audit Timing Selection System is a system in which corporations pre-register their preferred timing for tax audits and this is reflected in the audit schedule. It is a measure to alleviate the management burden on corporations resulting from tax audits.

Among 97 corporations subject to regular tax audits last year, 60 corporations submitted applications. By allowing corporations to pre-select and coordinate the timing of audits, the burden of preparation for tax audits was reduced, and companies received positive evaluations in that they could predict and manage schedules, which helped in establishing management plans.

This year, 91 corporations are applicable to the timing selection system, excluding corporations that require emergency audits or where schedule adjustments are difficult due to imminent statute of limitations periods. Based on last year's operational performance, the city plans to increase the effectiveness of the system to enhance receptiveness to audits and reduce the burden on corporations.

The city plans to send guidance letters to target corporations in March to receive applications for the tax audit timing selection system and conduct sequential tax audits from May through December. Corporations that do not submit their preferred timing will have their audit schedule determined by Suwon City.

A city official said, “We will enable corporations to select their tax audit timing so they can actively cooperate with audits,” adding, “Through business-friendly tax audits, we will increase public trust in tax administration.”