MMAA’s 41.1 Billion Tax Audit Penalty

The National Tax Service (NTS) will collect 41.1 billion won as a penalty from the Military Mutual Aid Association (MMAA) because it found out that the MMAA evaded taxes in a tax audit held at the beginning of the year.

According to the NTS and MMAA on July 15, the NTS has held the tax audit for about 40 days from last December to this February, and sent notification of the results of tax audit, saying that the MMAA should pay 41.1 billion won as a penalty.

After receiving notification from the NTS, the MMAA filed tax appeal for appropriateness before the assessment.

Although the NTS should notify applicants of the results within 60 days from the day of the tax appeal, it has been reported that the NTS has not yet made a decision and is planning to notify by next month.

The MMAA said related to the matter that the tax audit is only a regular audit held every five years, and that it has nothing to do with the investigation of public prosecutors.

And MMAA added, “The notification from the NTS is only the one that reports the result of the tax audit before finalizing the amount of tax. If that was to notify the amount of tax evasion, tax appeal for appropriateness before tax assessment itself is not possible.”

Prior to this case, Seoul District Public Prosecutors` Office (DPPO) had seized and searched the financial investment office of the MMAA in Dogok-dong, Seoul on suspicion of an employee of the MMAA connected with criminals manipulating stock prices.

Ji-Wan Cha cha@donga.com