NTS weighing corporate burden against benefits of expanded tax-crime investigation powers

National Tax Service Commissioner Lim Gwang-hyeon answers lawmakers' questions during a national audit of the NTS by the National Assembly's Finance and Economy Planning Committee at Government Complex Sejong on Tuesday. [Yonhap]
National Tax Service Commissioner Lim Gwang-hyeon answers lawmakers' questions during a national audit of the NTS by the National Assembly's Finance and Economy Planning Committee at Government Complex Sejong on Tuesday. [Yonhap]

National Tax Service Commissioner Lim Gwang-hyeon on Tuesday strongly rebuffed opposition claims that tax investigations are being conducted at the president's direction, saying the agency proceeds "carefully, with maximum restraint, and in accordance with principles."

Lim made the remarks at a national audit of the NTS by the National Assembly's Finance and Economy Planning Committee at Government Complex Sejong, responding to People Power Party lawmaker Ahn Sang-hun's assertion that the NTS repeatedly launches tax probes on specific companies as soon as the president singles them out.

"We proceed carefully, with maximum restraint, and in accordance with principles," Lim said. "Whether the president, the National Assembly, or the media raises an issue, if we determine it falls within the scope of our duties, we carry out the investigation."

He gave a similar response to fellow PPP lawmaker Yun Yeong-seok, who said he suspected the tax investigations into Coupang Inc. and the National Agricultural Cooperative Federation were politically motivated by the president. "In tax administration, we are working more neutrally than ever and diligently carrying out our core duties," Lim said.

When PPP lawmaker Lee Jong-wook argued that tax probes aimed at stabilizing prices were inappropriate, Lim said the NTS does not investigate companies simply for raising prices. "We conduct investigations only in cases where profiteering is suspected to involve tax evasion," he said.

On the selection of audit targets, Lim acknowledged a sense of grievance over how the probes are perceived. "There is a tendency to draw political connections when reading news reports, and I find that somewhat unfair," he said, adding that the number of non-regular audits this year would be significantly lower than last year.

He also explained the agency's practice of holding frequent media briefings on ongoing investigations. "The reason we hold press briefings relatively often is for the preventive effect — to let taxpayers know what areas the NTS is currently examining so they can be careful when filing and avoid any disadvantage," he said.

Responding to independent lawmaker Lee Chun-seok, who asked whether the NTS should take on tax-crime investigations using its expertise and experience in line with the planned abolition of the prosecution service and the overhaul of the investigation and indictment system, Lim said the agency would "carefully weigh the practical benefits of curbing tax evasion against the burden that would be placed on companies."

When Democratic Party lawmaker Moon Jin-seog raised concerns that a proliferation of tax platforms was encouraging tax evasion rather than legitimate tax reduction, Lim said the NTS is in discussions with the Ministry of Economy and Finance on strengthening the accountability of tax accountants.


oskymoon@heraldcorp.com