National Tax Service confirms collection from the processed food industry of 3,195 hundred million won
In a tax audit targeting the processed food sector, the National Tax Service collected 114 hundred million won from 3,195 companies. The audits covered a range of cases, including suspected monopoly and collusion, and the collected amounts were concentrated in some large companies.
The National Tax Service announced that, as a result of its tax audits of companies selling processed foods and related products, it collected 114 hundred million won from 3,195 companies. From an investor perspective, what matters is that tax risks in the industry have been confirmed.
From last year 9 to this year 2, tax audits were conducted in 117 rounds targeting 4 companies. The audits were carried out by category, including monopoly, collusion, and quota tariffs.
The investigation found indications that Company A used its dominant market position to raise product prices by about 5%. The same company was also found to have transferred about 150 hundred million won in profits by overpaying outsourcing processing fees to affiliates and importing at high prices from overseas local subsidiaries.
Company A was also found to have paid about 200in entertainment-style sales incentives related to maintaining transactions with a major distributor. The company was also found to have provided its controlling shareholder's side with profits worth several hundred million won by exclusively participating in a paid capital increase for an affiliate and causing new shares to be acquired at a high price.
Company B posted profits by keeping product prices unchanged even though international raw material prices fell. The investigation also confirmed a pattern in which the company passed on about 300in labor costs for dispatched workers borne by trading partners.
According to National Tax Service tallies, the combined total of the top 10firms in assessed taxes was 2,480billion won, accounting for about 78percent of the total. Based on the results, the tax authorities carried out consecutive assessments and collections.
The types of investigations included not only processed foods, agricultural, marine and livestock products, and daily necessities, but also franchise headquarters, and wedding and funeral businesses. The tax authorities are continuing further detailed reviews of the related allegations.
Sources: 뉴시스 경제
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