National Tax Service, tax evasion cases after price hikes under the guise of production cost114 companies,3,195 billion won in levies
The National Tax Service7 in12 companies that raised product prices citing higher production costs and then concealed additional profits114 companies for a total of3,195 billion won. These firms were classified as “tax evaders harming livelihoods” and are subject to payment of the levied amounts.
The National Tax Service7 in12 companies that raised product prices citing higher production costs and then hid the income generated in the process114 companies for a total of3,195 billion won. The National Tax Service classified these firms as “tax evaders harming livelihoods.”
The confirmed cases include forms in which companies raised prices under the pretext of higher production costs and then failed to report part of their sales or changed their accounting treatment to conceal income. The National Tax Service said it took issue with the concealment of income obtained in this way.
The number of cases uncovered this time was tallied at114 companies, and the total amount of tax assessed came to3,195 billion won. The National Tax Service said it would proceed with the collection process for these firms.
The National Tax Service explained that, through related investigations, it confirmed a link between price increases and concealed income. The results of the investigation were distributed after the official announcement on 7month 12day.
The National Tax Service described this case as a case of 'harm to livelihoods' and said it would continue to monitor similar acts. Further disclosure regarding the targets of the investigation and the methods used may be made in the future.
Corporate disclosures must reflect whether additional tax assessments are being imposed and the amounts involved. Investors need to use such disclosures to check the financial impact on the company and its plan to pay the additional tax.