Crackdown on Tax Evading "Decadent" Hotels

Home > National > Social Affairs

print dictionary print

Crackdown on Tax Evading "Decadent" Hotels

The National Tax Administration (NTA) started special tax investigations into hotels which operate various extra businesses including dance clubs on their premises without reporting the income to the tax department. A few notorious hotel clubs have held dance competitions in which the winners received cars as gifts. At one dance club female patrons were shedding their clothes.
Partly as a result of these revelations the NTA raided five hotels and confiscated their accounting books. The authorities will prosecute for tax evasion business owners and their families for any accounting irregularities. The NTA will also investigate the 'real' owner of the clubs or hotels by examining their original funds and licenses for opening businesses.
Furthermore, by the end of this month the NTA will announce those suspected business owners and continue an intensive investigation until January 1999. A source at the NTA said, 'This crackdown is aimed at preventing decadent businesses as well as tax evasions. Consumers should use credit cards more than cash because that forces establishments to report their income.'

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)