NTS investigate e-commerce in earnest

To head off the possible tax evasion practice of many involved in on-line commerce which has been increasing rapidly, the National Tax Service(NTS) has begun an aggressive investigative program in earnest.

The NTS revealed on the Semtember 13 that it has a plan to bring together an investigative team of 250 persons for the information gathering and inspection of e-commerce and companies dealing in electronic payment systems. The investigative team will begin their investigation of any possible tax evasion practice by such companies beginning this month.

A source in the NTS stated, "These days, the commercial transactions have begun to lean toward the electronic commerce, and many companies not only accept payments electronically, but depend on the electronic commerce for purchase, production, and goods management. With so much of the activity taking place on-line, there is a greater need for e-commerce investigative team."

The NTS, for the purpose of keeping tab on the electronic payment and e-commerce businesses, had established special departments in each of the regional investigative agencies in June, and is proposing to place the investigators this month to begin the probes.

The e-commerce investigative team will contain 40 persons with first-class information processor certificate as well as 215 other expert members.

Also, not directly involved with e-commerce investigative team, the NTS has also formed the "internet watch-dogs" to have a more effective control of the e-commerce and to produce a list of all internet shopping malls which have been popping up in ever increasing numbers.

For the internet shopping malls which have received their domain names (co.kr) from the Korea Network Information Center are listed on the name-list at the center, however, for the companies which received their domain names (.com and .net) from a foreign company, there really isn't any other way then to surf the net or look through the newspapers for their ads.

Lee Hoon dreamland@donga.com