owner of a mid-sized company was caught by the tax authorities after passing tens of thousands of shares of the company to an affiliate with a child as a major shareholder at a low price.
There was a whistleblower who played a major role in clarifying this suspicion, and the IRS refused to pay the bounty, causing controversy.
This is the exclusive report by reporter Lim Tae-woo.
is a company that consigns famous foreign brand shoes.
The chairman of this company entrusted 32,000 shares of the company's stock to Executive A for 10 years from 1987 under the name of a new company, and in 2013, he made it cheap to sell to a subsidiary whose son is the majority shareholder.
The IRS, which saw that the company had reduced corporate income by the difference because the son's company took over the stock at a much lower price than its actual value, the IRS paid the son's company an additional KRW 3.7 billion in corporate tax and was confirmed after a court case.
This suspicion of tax evasion was investigated in 2013 when a whistleblower reported it to the Busan National Tax Service.
However, even though the informant handed over various documents and specific circumstances proving the name trust of the key owner and the sale of bargain prices, the Busan National Tax Service dismissed charges after three months without properly investigating.
The suspicion of tax evasion, which was almost buried, led to additional punishment as the truth was revealed in a re-investigation by the Seoul National Tax Service three years later.
The informant, who confirmed that the tax was collected by his own report, applied for a reward payment to the Seoul National Tax Service, but the National Tax Service refused to pay the reward, saying that the information was not important data and was revealed by investigators' "persistent questions and answers and detailed investigation."
Eventually, the informant filed a request for a trial to cancel this decision by the National Tax Service, and the Tax Tribunal raised the informant's hand.
[Tax Tribunal Official: ((National Tax Service)) did not acknowledge the contribution of the informant, saying that it was a relentless pursuit and thorough investigation?) This is a rare case.
It's been a long time, but I haven't.] It
seems inevitable that the National Tax Service, which has been encouraging reports by raising the reward limit and payment rate to eradicate tax evasion, has neglected even the decisive report that actually led to the additional collection.
(Video coverage: Kim Hak-mo·Jeong Gyeong-moon, Video editing: Ha Seong-won)