Swiss secret accounts are a thing of the past… The actual owner of the account name ‘13579bomb’ was also found

The secret Swiss account that once hidden cannot be found by the government is now a thing of the past. The tax authorities have recently started to confirm the suspicion of tax evasion by finding ‘black money’ illegally hidden in overseas accounts through international cooperation.

In a briefing on the 7th, Kim Dong-il, director of the investigation department of the National Tax Service, announced that he had launched a tax investigation on 46 tax evaders using offshore black money secret accounts and fintech platforms. revenue

The National Tax Service announced on the 7th that it had identified 46 new offshore tax evasion suspects using secret overseas accounts or internet financial platforms and started a tax investigation. This time, there were three main types of investigation: ▶ Overseas secret account management (14 persons) ▶ New offshore tax evasion using electronic payment and settlement agency (PG) (13 persons) ▶ Overseas income transfer through unfair insider transactions (19 persons) .

Cases of suspected tax evasion using foreign secret accounts.  revenue

Cases of suspected tax evasion using foreign secret accounts. revenue

After exporting the product to an overseas corporation that he actually controls, Mr. A received the payment locally and hid it in a secret overseas account. Mr. A also stole salaries and dividends received from overseas corporations into a secret account, omitting reporting related income and overseas financial accounts. The hidden funds were used to purchase overseas real estate for children studying abroad. The National Tax Service suspected that Mr. A had illegally diverted funds overseas and did not pay gift tax, and began an investigation.

Those who, like Mr. A, hid their funds in a foreign secret account, opened the account name as a ‘number account’, where it is difficult to verify the real name. For example, the name of the account is set to a name known only to the user, such as ‘13579bomb’ and ‘12345bluediamond’, which is a combination of a number and a specific word instead of a name. In the past, countries with strong financial secrecy, such as Switzerland, Hong Kong and Singapore, had difficult procedures, such as obtaining a court subpoena to verify the beneficial owners of such anonymous accounts.

However, the National Tax Service explains that recently, financial information from a total of 151 countries, including these countries, has been exchanged through international agreements, so the meaning of secret accounts has disappeared. Kim Dong-il, head of the National Tax Service’s Investigation Bureau, said, “We regularly exchange financial information such as account holders, account numbers, and account balances. We are additionally exchanging all information related to this.”

Cases of suspected tax evasion using e-commerce technology development were also discovered. In particular, there were many methods of omitting sales to overseas and foreigners by abusing electronic payment and settlement agencies (PG).

Overseas sales may be omitted using PG

PG is a service that provides payment for safe transactions when purchasing overseas goods online. In Korea, there are NHN Cyber ​​Payment, Toss, KG, and Inesis, and abroad, Alipay, Tencent, and PayPal are famous. As of last year, the average daily payment amount of Korean PGs reached 705.5 billion won. However, since payment through PG is made in the name of an electronic payment and settlement agency, it is easy to hide sales. The cases discovered this time also aimed at the loopholes in this PG payment.

A case of suspected tax evasion using an electronic payment agency (PG).  revenue

A case of suspected tax evasion using an electronic payment agency (PG). revenue

Mr. B, who runs an online open market and sells cosmetics and miscellaneous goods to foreigners. After receiving the sales proceeds from overseas PG companies in an overseas virtual account, B’s eldest son’s domestic virtual account was irregularly brought in, and income was omitted. Mr. C, who runs a plastic surgery clinic, is also suspected of not reporting related income by receiving money through PG after performing cosmetic procedures or plastic surgery on foreign patients.

Cases of illegally diverting funds overseas through insider trading were also discovered. D, a Korean corporation, changed the transaction method to pay the royalties paid to the US parent company to its overseas sister companies, and then illegally set the royalties three times the previous one, and outflowed corporate funds.

Director Kim said, “We will do our best to eradicate unfair offshore tax evasion, which is encroaching on the national tax base, by further strengthening international announcements and taking preemptive measures such as discovering new types of tax evasion.”

Sejong = Reporter Namjoon Kim [email protected]


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