Kwanghyun Lim Meets UK, Belgium, and Hungary Tax Chiefs: “Strengthening Cooperation on Tax Collection from Delinquents”

MOU on Collection Cooperation Signed with Three European Countries

Prompt Exchange of Tax Information Between Tax Authorities

Discussion on Simultaneous Tax Investigations When Necessary

Kwanghyun Lim, Commissioner of the National Tax Service, met sequentially with the commissioners of the national tax authorities of the United Kingdom, Belgium, and Hungary, agreeing to strengthen cooperation on the collection of overseas assets held by tax delinquents. In addition to exchanging tax information, both sides also discussed measures that could allow for simultaneous tax investigations by both countries when necessary.

The National Tax Service announced on the 14th that Commissioner Lim visited Hungary (Budapest), Belgium (Brussels), and the United Kingdom (London) in succession from May 8 to 13, holding bilateral meetings with the heads of each country’s national tax authority and signing a “Practical Agreement on Collection Cooperation (MOU)” with each.

Kwanghyun Lim, Commissioner of the National Tax Service (right), and Ferenc Baguihegyi, Commissioner of the Hungarian National Tax and Customs Administration, are posing for a commemorative photo after signing a working-level agreement on the 8th. National Tax Service

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An official from the National Tax Service explained, “This tour was arranged to strengthen the collection cooperation network for the recovery of overseas assets of tax delinquents with major European countries.” The official added, “With the signing of the MOUs, the collection cooperation network—previously focused mainly on the Asia-Pacific region—has now been expanded to Europe.”

The need to track and recover overseas assets is steadily increasing. For example, a foreign tax delinquent who was a professional athlete moved to a European league after accumulating tax arrears in Korea, and following a request for collection cooperation from the Korean National Tax Service, the tax authorities in his home country have begun seizure procedures on assets located in that country. Another domestic tax delinquent, who was publicly listed for habitual and high-value delinquency, has continued to evade taxes for an extended period by conducting business activities under borrowed names in various overseas locations. Additionally, a domestic businessperson is under investigation on suspicion of not reporting taxes in any country after diverting fees received for technology provision in Korea to accounts held by overseas corporations.

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Commissioner Lim requested prompt exchange of tax information between the tax authorities of the respective countries for such tax delinquents and suspected offshore tax evaders. Furthermore, he discussed the possibility of conducting simultaneous tax investigations when necessary. A simultaneous tax investigation refers to an arrangement where the tax authorities of two countries investigate individuals or entities suspected of tax evasion, who have economic bases in both countries, at the same time within their respective jurisdictions while sharing investigative information. This does not involve investigators crossing borders; instead, each country’s investigators conduct inquiries within their own territory in accordance with their own laws, exchanging relevant tax information that may assist the counterpart country. The National Tax Service expects that, through simultaneous tax investigations, if the counterpart tax authority uncovers hidden overseas assets, it will be possible to request collection cooperation and recover the delinquent taxes.

This content was produced with the assistance of AI translation services.

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