Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

Computerization Case for Collecting ofthe Delinquency Local Taxes

  • Kim, Hong Goune Yuseong-gu Office Tax Division, Daejeon
  • Kim, Young Tae Department of Accounting, Hannam University

Asian Tax Journal Vol. 8 No. 4 (2007), pp. 223-242

Abstract

The delinquency of local governments is rapidly increasing because of a long economic depression and the increase amount of local tax revenues. There is no any consistency or logicality in the delinquent taxes. It is a mere aggregate of delayed sixteen local taxes. These situations make the computerization of collecting process very difficult. The process is not computerized but very labor intensive. The aim of delinquency management is to collect the delayed taxes with cash. The collecting process of delinquency, by necessity, includes a face-to-face meeting between the tax collectors and delinquents. The various behaviors of the delinquents call for various collecting methods of tax collectors. The tax collectors spend 70% of their time on meeting delinquents except the legal execution. There are three methods for collecting delinquency : face-to-face, communication by phone and previous warning notice through the mail. Mailing notices is the most useful method since it requires the least amount of human resources to collect a huge increase of delinquent taxes. Many managers of delinquent tax can't use the notice method for all the delinquents, except for a few high delinquent taxes, because of the lack of time and workers. Yu-Seong District Office has constructed a computerized system to deliver notices to all the delinquents automatically in a short time. As a result, Yu-Seong District Office has collected a large amount of delinquency. This efficient delinquency collection system is managed by a few workers and is able to collect a large amount from the delinquents. This success is the result of the delinquent tax manager's knowledge and experience, constant study to minimizing the delinquent tax, and the free communication with colleagues about the computerization of the notice method. This computerized notice method can also be used by other delinquent managers such as for collecting national delinquency and other delinquent fees.

Keywords

  • local taxes
  • delinquency
  • delinquency management
  • delinquency warning notice
  • computerization

Related Articles