ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

A Study on the Improvement in Relation to Evidence on Expenditure Subsidized by Government

  • Hyo Geun Kim Department of Taxation, Kangnam University

Asian Tax Journal Vol. 15 No. 1 (2014), pp. 105-126

Abstract

This study is intended to raise issues and provide solutions in relation to evidence on expendituresubsidized by the government in order to maintain transparency. Through the review of current tax regulation and accounting policy, and current process in placewith regard to evidence on expenditure subsidized by the government, this study identifies issuesand draws solutions as follows. First, transparency of expenditure is to be maintained more easily by applying project costaccounting system, which currently limited beneficiaries adopt this system, to all beneficiaries. Inaddition, control efficiency can be expected by encouraging credit card for the expenditure uponadopting project cost accounting system. Second, various training programs are to be provided to beneficiaries for enhancing the abilityto maintain evidence on the expenditure. As specific examples, training of accounting to potentialbeneficiaries before participation, mandatory training of book closing for project participants, elearningprogram and continuous supporting through accounting team are to be considered. Third, as a recommendation on time line of submitting detail of expenditure, participants can achievemore efficiency in closing by submitting detail of expenditures on a monthly basis by 10th of thefollowing month rather than submitting within 10 days from expenditure. Moreover, implementationof pre－review system can provide participants with chance of rectifying their submission. Finally, as a recommendation on retention period of evidence, participant can improve its abilityto retain evidence on expenditure through saving electronic version into project cost accountingsystem. This study expects that aforementioned four solutions are to enhance transparency on expendituressubsidized by the government, and expects that more strict punishment can prohibit from misuseor misappropriation of government subsidy.

Keywords

  • Project subsidized by the government
  • Subsidy
  • Evidence on expenditure

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Asian Tax Journal

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