Cracking Down
The National Tax Service announced on June 9 that any resident or local corporation in Korea that has an overseas banking account balance of more than 1 billion won (US$898,000) as of last year has to report by June 30.
The report can be filed electronically on the Home Tax website or by handing in the corresponding form to the tax office in the jurisdiction. Any foreigner who has resided for one year or longer or has an address in Korea has to report as well, as is the case with international bank accounts owned by the overseas branches of local corporations.
The non-reporting or reporting of a reduced account balance is subject to a fine of up to 10 percent of the omitted amount. In addition, non-explanation or false explanation of the source of the money is subject to an additional penalty equivalent to 10 percent of the amount.
Personal information will be disclosed when the amount of non-reporting or reduced reporting exceeds 5 billion won (US$4.5 million). Those involved in it will face up to two years in prison or a fine of up to 10 percent.