A Study on the Current Practices and Improvements of Tax Examination System in Korea
Asian Tax Journal Vol. 10 No. 1 (2009), pp. 77-122
Abstract
Tax examination and advocacy of taxpayers are in a tradeoff relation. Government has been improving tax examination system since 1999 with the introduction of new policies such as taxpayer advocacy officer and pretax propriety examination. This paper reviews the tax examination policies have been operating as intended and suggests improvements for the tax examination system. This paper is based on the tax statistics and cases in Korea and other countries. Research results indicate the necessity of additional disclosure of examination sampling process and results, adjustment of tax examination ratio with annual tax white book publication, limitation of tax examination period, detailed follow－up of pretax propriety examination, adoption of mediation system and simplification of appeal process with the introduction of tax court. In addition, this paper emphasizes enactment of taxpayer advocacy officer and enforcement of a taxpayers advocacy committees publicity.
Keywords
- tax examination
- sampling for tax examination
- examination results disclosure
- pretax propriety examination
- mediation system
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