Kang Min-soo, Commissioner of the National Tax Service (NTS), holds the 29th Korea-Japan National Tax Agency Commissioners’ Meeting
Strengthening cooperation on tax evaders hiding assets overseas
Actively supporting the resolution of double taxation for overseas companies
[Sejong=Newsis] Reporter Ahn Ho-kyun: The National Tax Service is strengthening its tax cooperation framework with Japan to build a more effective network for collecting taxes from high-income delinquents across borders.
According to the NTS on the 16th, Commissioner Kang Min-soo held a meeting with Okugawa Tatsuo, Commissioner of the Japan National Tax Agency, in Tokyo the previous day. They discussed Korea’s “investigation of asset tracking for high-income habitual tax delinquents” and Japan’s “tax administration of new financial assets.”
The two tax commissioners agreed to respond more decisively to intentional tax evasion through overseas asset concealment to establish tax justice. They also concurred on the necessity of improving the efficacy of tax collection cooperation between the two countries under the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
This tax collection cooperation involves the foreign tax authorities performing mandatory collections, such as overseas asset inquiries, seizures, and auctions, on behalf of the country, making the collection of overdue taxes more efficient.
The NTS and the Japan National Tax Agency will also promote the mutual agreement process under the Korea-Japan tax treaty to actively support the prevention and resolution of issues like double taxation for companies operating in both countries.
Additionally, commendations signed by the respective commissioners were exchanged for those who contributed significantly to the exchange of tax information and the provision of information on offshore tax evasion under the tax treaty.
Commissioner Kang shared Korea’s “Key Strategies for National Tax Administration,” including the implementation of an AI-based intelligent HomeTax system, innovations in year-end tax settlement services, and efforts to expand estate and gift tax appraisals.
Furthermore, he introduced a press release titled ‘Locking the Door on Studio, Dress, Make-up (SDM)’ and Shinkai Makoto, the director, shared this on X (formerly Twitter), garnering interest and positive feedback from the Japan National Tax Agency.
Previously, the NTS released a tax investigation notice in February addressing the exploitation by certain sectors making marriage, childbirth, and childcare difficult for the younger generation. The notice used the phrase from the Japanese animation ‘Suzume’s Locking Up’ as a subheading for the investigation into sales practices by sectors like studios, wedding dresses, and makeup, postnatal care centers, and English kindergartens.
The NTS highlighted that enhanced cooperation between Korea and Japan stems from continued meetings, including the Asia-Pacific Tax Heads Meeting (October) and the OECD Tax Commissioners’ Meeting (November), along with two multiple ‘Korea-Japan Working-level Meetings.’
The NTS stated, “We will continue to establish an organic cooperation system among tax authorities to closely engage in international cooperation and actively support Korean nationals and businesses operating abroad through proactive tax diplomacy.”