NTS, Customs Service boost cooperation on tax dodging

The National Tax Service and the Korea Customs Service said yesterday they have signed an agreement to further enhance sharing of information to track down offshore tax dodging.

The two agencies said cooperation is crucial as the methods employed in offshore tax evasion are becoming more complicated and are constantly changing.

This includes the exchange of tax files and other related documents, but also crucial information about how offshore tax evasion is set up.

For example, the tax agency recently provided information about the owner of an electronics goods manufacturer who either left the profit made from his production plant in Indonesia to his children or purchased real estate by smuggling cash in cargo handled by the customs office.

The customs office, on the other hand, provided information about a person who underreported the purchase price of goods, including a painting bought in the United States, to reduce the amount of tax.