(From Korea JoongAng Daily)
An unnamed Korean, according to the National Tax Service (NTS), was living a luxurious life with properties and investments inherited from his father. This inherited fortune, which included stocks overseas, high-end residences as well as diverse financial assets, was not only unreported to the Korean tax agency but was managed by an offshore trust fund that his father created. The son sold the overseas stock and properties and moved some of the profits he made into Korea illegally. He was caught – and fined 60 billion won ($49.9 million) on charges of evasion of inheritance and income tax.
In another case, a Korean created a shell company in the British Virgin Islands to stash black money. A company he owned sent money to the shell company, which then invested in an overseas resources company. The Korean sold that investment and hid his profit through the shell company, using it for his personal spending.
The NTS says it is cracking down on tax dodgers like these two cases and is warning investors to come clean on properties they own overseas or profits they made there. An agreement with the United States over the Foreign Account Tax Compliance Act that kicks off this year is expected to tighten its grip on offshore tax dodgers.
The tax agency Wednesday said it started this month a simultaneous investigation of 30 individuals and companies suspected of offshore tax evasion. Read more