Investigation for Fund Sources on the Persons Suspected of Speculation

National Tax Service (NTS) extends investigation of income sources having focused on suspected persons speculating apartments in Kangnam of Seoul to the persons suspected in apartment speculation in Kangbuk of Seoul, and metropolitan area such as new towns. Additionally, NTS will perform tax investigation on the persons who is suspected in real estate speculation as well.

Kim Young-bae, manager for Investigation 3 team announced “the team will launch income sources investigation on 486 persons of 312 households who haven’t clear purchasing fund source among 151,000 apartment transactions in Seoul, Bundang of Sungnam-city, Ilsan of Goyang-city, etc.”

For the investigation, NTS notice in advance to submit statement at 11th, and begin to investigate fund sources.

The subject to the investigation ▽ less than 30 years old, inability economically and suspected to be endowed the fund and purchased apartment ▽ the tax payment is small amount, but suspected of apartment speculation and tax avoidance ▽ have lots of conveyance records and suspected as speculators of apartment ▽ the persons suspected of using others name or permitting the use of his/her name for real estate transaction etc.

There are 907 units of apartments purchased by the suspected persons and 15 persons are suspected of purchasing more than 5 apartments.

This investigation includes salary persons who involved in the speculation frequently. Chun (36, Namyangju), a salary person of 17 million won of annual income, has purchased 9 housing including apartment located in Songpa-gu and sold 7 of them within 1 year since 1999.

NTS will investigate all of the members of the household as well as the suspected person on all property transaction since 1998 for fund flow including conveyance tax, gift tax, succession tax, etc. The investigation will be focused on spouse’s support or using of company fund for speculation purpose through financial transaction.

Additionally, NTS will investigate ‘double contract’ used generally, and prosecute the persons who avoided tax illegally.

NTS will collect information on property transaction from January to July of this year to calm down the fever of property speculation for Seoul, Cheju where have many dissolution zone of green belt, dissolution zone of military purpose, development zone of new town, nominated as tourism special zone, etc.

From the end of the last month, NTS is under investigation about fund sources of 483 persons who purchased redevelopment of apartments.

Jeong-Hun Park sunshade@donga.com