Post by Sapphire Capital on Oct 29, 2008 20:34:38 GMT 4
South Korea: Latest guide on NTS tax audit procedures
The National Tax Service (NTS) has announced that it will be releasing an audit guide for 2008. The latest guide will include various measures designed to enhance the transparency of surrounding the taxpayer audit selection process and reduce inconveniences to taxpayers.
Some of the key highlights of the guide include:
The criteria for selecting taxpayers for audit will be reviewed by the target selection committee which is comprised of government officials as well as external experts from the private sector;
A taxpayer must be notified of certain details of an upcoming tax audit at least 10 days before the field audit is initiated. These details include a summary of the areas of tax that will be the focus of the review, the tax years to be covered by the tax audit, the duration of audit and the reason for tax audit selection. Taxpayers will also be provided with a tax audit orientation before the field audit is initiated, which will include an explanation of taxpayer rights and details of tax audit procedures;
Under the certain conditions, a taxpayer may request a postponement of tax audit or a change in the site of the field audit before the field audit is initiated;
If the duration of the field audit lasts 20 days or more or if there is an extension of the field audit period, the auditor must present the taxpayer with an interim briefing on the status of the on-going tax audit;
Any expansion of field audit coverage will require pre-approval from the taxpayer protection committee, which is mainly comprised of representatives from the private sector. The taxpayer will also receive a written notification that explains the expansion in the scope of the field audit; and
At the closing of a tax audit, a wrap-up meeting will be held on the last day of the tax audit, which explains the items assessed, the basis of assessment and an explanation of post-audit procedures (such as tax appeals).
After the closing of the tax audit, the tax authorities will issue a pre-assessment notice which provides a summary of the proposed tax assessment. The taxpayer has an opportunity to challenge the pre-assessment by filing a request within 30 days from the date of receiving the pre-assessment notice.
The results of the examination will be reflected in a final tax assessment notice. A taxpayer may challenge a final tax assessment by filing an appeal with the NTS, the tax tribunal or the board of audit and inspection within 90 days of receiving the official assessment notification.
Source: ITR / PricewaterhouseCoopers
Henry An (henryan@samil.com) and David Jin-Young Lee (jylee@samil.com), Seoul +82 2 3781 2594
The National Tax Service (NTS) has announced that it will be releasing an audit guide for 2008. The latest guide will include various measures designed to enhance the transparency of surrounding the taxpayer audit selection process and reduce inconveniences to taxpayers.
Some of the key highlights of the guide include:
The criteria for selecting taxpayers for audit will be reviewed by the target selection committee which is comprised of government officials as well as external experts from the private sector;
A taxpayer must be notified of certain details of an upcoming tax audit at least 10 days before the field audit is initiated. These details include a summary of the areas of tax that will be the focus of the review, the tax years to be covered by the tax audit, the duration of audit and the reason for tax audit selection. Taxpayers will also be provided with a tax audit orientation before the field audit is initiated, which will include an explanation of taxpayer rights and details of tax audit procedures;
Under the certain conditions, a taxpayer may request a postponement of tax audit or a change in the site of the field audit before the field audit is initiated;
If the duration of the field audit lasts 20 days or more or if there is an extension of the field audit period, the auditor must present the taxpayer with an interim briefing on the status of the on-going tax audit;
Any expansion of field audit coverage will require pre-approval from the taxpayer protection committee, which is mainly comprised of representatives from the private sector. The taxpayer will also receive a written notification that explains the expansion in the scope of the field audit; and
At the closing of a tax audit, a wrap-up meeting will be held on the last day of the tax audit, which explains the items assessed, the basis of assessment and an explanation of post-audit procedures (such as tax appeals).
After the closing of the tax audit, the tax authorities will issue a pre-assessment notice which provides a summary of the proposed tax assessment. The taxpayer has an opportunity to challenge the pre-assessment by filing a request within 30 days from the date of receiving the pre-assessment notice.
The results of the examination will be reflected in a final tax assessment notice. A taxpayer may challenge a final tax assessment by filing an appeal with the NTS, the tax tribunal or the board of audit and inspection within 90 days of receiving the official assessment notification.
Source: ITR / PricewaterhouseCoopers
Henry An (henryan@samil.com) and David Jin-Young Lee (jylee@samil.com), Seoul +82 2 3781 2594