On the 11th, it was learned that controversy is growing over a bill to add the phrase "tax expert" to the Certified Public Accountant Act, as the tax agent industry has pushed back and the Ministry of Economy and Finance and the Financial Services Commission (FSC) have issued differing views.
◇ Bill says "accountants are tax experts"… tax agent industry says it "triggers a turf conflict"
The controversy began with a bill to amend the Certified Public Accountant Act that Democratic Party of Korea lawmaker Yu Dong-su introduced in Sep. The amendment adds the phrase "accountants are tax experts with public purpose" to the current law. It also changes the provision that simply defines the scope of accountants' duties as "tax agency" to "tax agency under Article 2 of the Tax Agent Act." The bill is under review at the National Policy Committee.
The Korea Association of Certified Tax Agents objected. It said the Tax Agent Act already contains the phrase "tax agents are tax experts with public purpose," and it is not desirable to insert the same wording into the Accountant Act. It also said it is hard to agree with changing accountants' duties from simple tax agency to tax agency under Article 2 of the Tax Agent Act.
In a statement, the association said, "It ignores the reality that tax agents handle more than 97% of accounting tasks at domestic corporations," adding that "the bill is causing a turf conflict."
By contrast, the Korean Institute of Certified Public Accountants said, "The scope of accountants' duties is already clearly set out in laws and regulations as including tax agency, and adding the expression tax expert does not expand the turf but codifies the public purpose of the duties."
◇ MOEF says "there is room to conflict with the Tax Agent Act"… FSC says "a provision that heightens accountants' accountability"
Amid this, the Ministry of Economy and Finance and the Financial Services Commission (FSC), the competent authorities, have offered differing positions. The Ministry of Economy and Finance (MOEF), which oversees the Tax Agent Act, submitted an opinion to the National Policy Committee that "it is hard to view certified public accountants as tax experts, so the expression tax expert should be deleted." It cited a provision in the Tax Agent Act that "a person not registered with the MOEF as a tax agent cannot use the title of tax agent or a similar designation."
In response, the Financial Services Commission (FSC), which oversees the Certified Public Accountant Act, said it is reasonable "in that explicitly stating the expression that they protect the rights and interests of the public as tax experts with public purpose can strengthen accountants' accountability."
During its review of the bill, the National Policy Committee plans to discuss potential conflicts with the Tax Agent Act and turf conflicts between professions.
An industry official said, "As it has become harder to make money than before in licensed professional fields, there is growing sensitivity to internal competition and encroachment on jurisdictions."
Sales per tax agent affiliated with a firm fell from 335.9 million won in 2022 to 334 million won in 2024. Over the same period, sales per accountant affiliated with a firm inched up from 748.2 million won to 750.5 million won.