By Kim Jae-won
The National Tax Service (NTS) said Thursday that it levied 278.3 billion won in fines and back taxes on 11 businessmen and professionals who had allegedly transferred their wealth to their offspring through illegal international transactions.
The tax agency said it discovered new schemes using overseas tax havens which have evolved to be more sophisticated to avoid the agency’s radar.
Analysts say the taxation is part of the agency’s effort to crack down on illegal capital outflow, which burdens the nation’s economy amid the eurozone debt crisis.
“Rich people’s illegal inheritances leads to an outflow of national wealth and shatters the roots of fair society,” said Lim Hwan-soo, an assistant commissioner for investigation of the NTS at a news conference.
Lim said that the NTS has also started to investigate an additional 10 companies suspected of being involved in illegal inheritance practices. They are mostly mid-sized companies in the industries of electronics, mechanics and textiles, whose annual revenues are between 100 billion and 500 billion won, according to the agency.
Some experts say that with the investigation, the tax agency is seeking to keep in step with the Lee Myung-bak administration’s efforts to provide an “ecosystem development” in society, which provides equal chances for the poor and the underprivileged compared to the rich and the wealthy.
The NTS said it will use all possible methods including information exchanges with foreign tax authorities to crack down on those criminals. It unveiled some evasion cases, but did not identify the tax dodgers in compliance with the National Tax Basic Law, which protects taxpayers’ private information.
Kim, an owner of a company, established X fund in the British Virgin Islands. He sold shares of his company to the fund cheaply, and evaded corporate taxes. Later, he registered the X fund under his son’s name making him the owner of the company without paying gift tax. The NTS levied 80 billion won in corporate and gift taxes and referred the case to the prosecutors’ office, accusing Kim of tax crimes.
Jeong, a majority shareholder of another firm, established a paper company in a tax haven and transmitted investment funds to the company. He made enormous profits by investing in overseas resources projects with the funds, but evaded income tax by hiding the money in overseas banking accounts.
He bought a luxury apartment with some of the money and gave it to his wife. The NTS imposed 25 billion won in income and gift taxes on Jeong. ******************************************************************* Imagine all the Tun, Tan Sri, Datuk Seri, Datuk and all whatnot having to pay taxes in Malaysia.
Will the truth be reveal that none of these bastards pay taxes. I know of three billionaires who do not pay taxes in Malaysia. Now even their children are doing the same.
In Malaysia only fools like you and me pay taxes. The rich are untouchable.
Of the eight shown above, who do you think pay taxes? |
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