S. Korea launches task force on offshore tax cheats

SEOUL, Nov. 18 (Yonhap) -- South Korea's tax agency said Wednesday that it has
launched a task force to crack down on offshore tax evasion attempts by
conglomerates and other high-income citizens.
The task force will focus its work on gathering information on murky overseas
investments, hidden assets and related data of local citizens suspected of
evading taxes through international transactions, the National Tax Service (NTS)
said.
It will also seek cooperation with its counterparts in foreign countries in
sharing data and networks, the NTS added.
The launch is in line with a global trend of tax watchdogs worldwide intensifying
surveillance over offshore assets in order to spot tax evasion attempts,
according to the tax agency.
The U.S. is already running such a body exclusively in charge of tracing offshore
assets held by people suspected of evading taxes. China and Japan are also
ramping up tax probes into multinational companies, it said.
Still, the task force started its operation at a sensitive timing as controversy
is growing over purchases of high-priced real estate in the U.S. by family
members of Hyosung Group, one of the nation's mid-sized conglomerates.
Prosecutors are investigating allegations that they might have used company funds
to purchase the assets. Hyosung denied any wrongdoing. The NPS said that the new
body is not intended to target a specific case, declining to elaborate on the
matter.
(END)