South Korea and Japan's tax authorities have decided to strengthen cooperation in collecting taxes from individuals who have evaded large taxes and concealed assets overseas.
On the 15th, Administrator Kang Min-soo of the National Tax Service and Commissioner Tetsuo Oku of the National Tax Agency of Japan held a meeting in Tokyo, Japan, and agreed on this.
During the meeting, the tax administrators from both countries shared major strategies for tax administration and discussed measures to address high-value tax delinquents and taxation of new financial assets. The two administrators particularly agreed to strengthen cooperative responses against tax delinquents who conceal assets overseas in order to establish tax justice.
Specifically, they decided to expand their collection cooperation activities based on the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. This multilateral agreement, led by the Organization for Economic Cooperation and Development (OECD), facilitates information exchange related to tax administration and cooperation in collection. Based on this agreement, the two countries plan to more efficiently collect delinquent taxes by conducting overseas asset inquiries, seizures, and auctions for tax delinquents.
In addition, they agreed to actively support the resolution of tax issues, including the prevention and resolution of double taxation for corporations entering both countries, by revitalizing the mutual agreement procedures under the Korea-Japan Tax Treaty.