Director used patient brokers to build clientele, then fabricated advertising expenses to reduce income tax liability
The director of an eye clinic has been indicted on charges of evading approximately 2.7 billion won ($1.77 million) in income taxes through fabricated tax invoices.
The tax crime investigation unit of the Seoul Central District Prosecutors' Office, led by chief prosecutor Yong Tae-ho, indicted the director, identified only as A, on June 11 on charges including aggravated tax evasion under the Act on the Aggravated Punishment of Specific Crimes. The clinic is a well-known ophthalmology practice in Gangnam, Seoul.
A is accused of issuing 6.1 billion won worth of false tax invoices between June 2019 and February 2021 and evading approximately 2.7 billion won in income taxes. Investigators found that A had paid patient brokers tens of billions of won over several years in referral fees to funnel clients to the clinic.
As net profit grew, A sought ways to avoid the resulting income tax burden. Investigators found that A fabricated tax invoices made to appear as payments for promotional video production, then had the money returned — effectively claiming the expenses as deductions while recouping the funds.
Once the investigation began, A paid back all outstanding taxes, totaling approximately 3.7 billion won.
ikson@heraldcorp.com
