National Tax Service Launches Probe into Suspected 170 Billion Won Real Estate Tax Evasion, Including 'Parental Advantage' Cases

The National Tax Service is launching a 170 billion won tax investigation into 127 individuals suspected of real estate tax evasion, including allegations of circumventing gift taxes to purchase high-end apartments using funds from their parents.

This probe covers suspicious cases of purchasing expensive homes without loans that would be difficult to afford based on income levels, or borrowing funds by creating loan agreements with irregular terms from parents. The total value of homes acquired by the investigated individuals amounts to 360 billion won, with an estimated 170 billion won in evaded taxes.

The NTS will meticulously investigate the process and source of fund formation. If illegal activities are confirmed, the agency will take strict measures, including reporting to investigative authorities and imposing substantial penalties such as unfair additional taxes. The NTS plans to respond sternly to attempts at tax evasion, such as disguised gifts, which may increase after the grace period for additional taxes on multiple homeowners ends, by imposing penalties.

Additionally, starting in the second half of the year, the NTS will conduct a comprehensive verification of cases where business loans were misused to acquire high-end apartments.