National Tax Service Commissioner Candidate: “Reviewing Whether to Tax Roh Tae-woo’s Slush Funds”

by times news cr

2024-07-19 04:00:15

“We need to review the statute of limitations and related laws”
Choi Tae-won’s side: “I never received 30 billion won”
National Tax Service: “Low possibility of gift taxation”

As the divorce proceedings between SK Group Chairman Choi Tae-won and Art Center Nabi Director Noh So-young reveal that former President Roh Tae-woo’s slush funds flowed into SK Group, attention is focused on whether gift tax will be imposed. However, the National Tax Service currently maintains that the possibility of additional gift tax, etc., being imposed is low.

According to the National Tax Service on the 17th, National Tax Service Commissioner nominee Kang Min-soo responded to a question about the possibility of taxing former President Roh’s slush funds during a confirmation hearing held at the National Assembly the previous day by saying, “I think we need to look into the statute of limitations and related laws.”

During the recent divorce proceedings with Chairman Choi, Director Roh claimed that 30 billion won was transferred to SK in the early 1990s based on a memo from former President Roh’s wife, Ms. Kim Ok-sook, and the court presumed that this money was former President Roh’s slush fund. It was reported that the memo stated that in addition to the 30 billion won, an additional 60.4 billion won was allocated to family members and others. Previously, Chairman Choi’s side stated, “I have never received 30 billion won from former President Roh.”

The tax authorities generally impose gift tax on pure gifts with no consideration for slush funds, and income tax on gifts with specific consideration. They can also impose gift tax on slush funds that flow between family members. In fact, there was a case where gift tax was belatedly imposed on slush funds that flowed to former President Chun Doo-hwan’s son, Jeon Jae-yong.

However, the National Tax Service has determined that it will not be easy to impose gift tax on this case because the taxable period has already passed. According to the National Tax Basic Act, if a taxpayer evades inheritance or gift tax through fraudulent acts, the tax can be imposed within one year from the date of learning of the inheritance or gift of the property, but this can only be applied to inheritances or gifts made after 2000. Regarding this, a National Tax Service official said, “We plan to specifically look into whether to impose tax after the Supreme Court confirms the facts.”


Sejong = Reporter Kim Do-hyung [email protected]

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2024-07-19 04:00:15

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