National tax agency to increase cooperation with Britain, Bulgaria

Economy

Published: 25 Mar. 2022, 12:56 Updated: 25 Mar. 2022, 16:26

National tax agency to increase cooperation with Britain, Bulgaria

National Tax Service Commissioner Kim Dae-ji poses with Britain’s Her Majesty's Revenue and Customs’ Commission Chief Executive Jim Harra in London on March 22. [NATIONAL TAX SERVICE]

National Tax Service Commissioner Kim Dae-ji with Bulgaria’s National Revenue Agency Director General Rumen Spetsov in Sofia on March 22. [NATIONAL TAX SERVICE]

Amid increasing global financial exchanges particularly in cryptocurrency, which has also resulted in the rise of international tax dodgers, the Korean tax agency is aiming to increase cooperation with other international tax agencies.

According to Korea’s National Tax Service on Friday, tax commissioner Kim Dae-ji held a meeting with the head of the tax agencies in Britain and Bulgaria.

The meeting with Her Majesty's Revenue and Customs’ Commission Chief Executive Jim Harra took place in London on March 22 and with Bulgaria’s National Revenue Agency Director General Rumen Spetsov in Sofia on March 24.

The meeting of the head of the tax agencies between Korea and Bulgaria is its first.

One of the key issues that was discussed, according to the Korean tax agency, was the emergence of new tax dodging schemes including those manipulating new financial products and virtual assets that are difficult to track down.

The inheriting of business managements through illegal means is evolving rapidly.

The key to fair taxation is to prevent offshore tax dodging especially by those with exceptional wealth.

In order to do so, sharing information and experiences is essential.

Swift and accurate information exchange is expected to improve efficiency, helping the tax authorities gather detailed income information on people suspected of tax evasion especially through offshore schemes.

Spetsov showed interest in Korea’s digitalized tax system, which the Korea National Tax Service presented during the Intra-European Organisation of Tax Administrators’ general meeting in July 2021.

The system includes the use of latest technologies such as artificial intelligence, a virtual tax office, Big Data analysis and blockchain technologies.

Bulgaria has been requesting Korea share its experience with electronic taxation since July.

The tax authority said it will continue with active “tax diplomacy” to bolster sustainable growth of each country cooperating.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]