Tax evasion by exploiting 'address laundering and R&D unfair tax credit'...IRS collects 174.9 billion won last year

Tax avoidance activities using deductions and reductions, such as tax reductions for address laundering or unfair tax credits for research and human resource development through illegal brokers, have not been eradicated.

The National Tax Service said some YouTubers and mail-order vendors have been identified as so-called address laundering cases in which they actually do business in Seoul but register false businesses in shared offices outside of overcrowded areas in the Seoul metropolitan area such as Yongin and Songdo.

It exploited the fact that if a young man starts a business outside of overcrowded control areas in the metropolitan area, he or she will reduce corporate tax and income tax by 100% for five years.

In addition, it was revealed that hospitals, clinics, academies, pubs, and taxi companies received R&D tax credits without actually conducting research and development activities after being recognized by research institutes.A case of applying for employment increase tax credit by submitting a fake labor contract

was also caught.

The National Tax Service collected a total of 174.9 billion won last year, including 162.4 billion won for corporations and 12.5 billion won for individuals through follow-up management such as tax cuts and employment increase tax credits for start-up SMEs.