NTS recovers 1.4 billion won hidden in studio apartment

The National Tax Service recovered 1.4 billion won in cash from a safe inside a small officetel after a month of stakeouts. The tax delinquent had attempted to hide the wealth through a sham divorce and by registering the property under an employee's name.

A tax delinquent who withdrew all assets in cash immediately following a tax audit and hid wealth through a sham divorce and an officetel registered under an employee's name has been caught. Following a month of field inquiries and stakeouts, the National Tax Service (NTS) located the hidden assets and recovered 1.4 billion won in cash, successfully collecting the full amount of unpaid taxes.

The story of this forced collection, as reported by the NTS, details the sophisticated asset concealment methods used by malicious high-value delinquents and the precise investigation process employed by the NTS to track them. The NTS does not conduct field searches for all delinquents, instead focusing on high-value targets where suspicions of asset concealment have been identified.

Field searches involving forced entry follow analysis of concealment patterns

The NTS first utilizes its internal National Tax Administration System (NTS) to analyze the flow of a delinquent's assets. After verifying high-value transfers between family members or other digital evidence of asset concealment, the agency proceeds with field inspections to determine if actual concealment has occurred.

The field search process is often not smooth. There are cases where delinquents, knowing someone is inside the residence, refuse to open the door and hold out for several hours. In such instances, the NTS provides prior notice that it will execute a forced entry if the door is not opened, and then proceeds with the search. If shouting or violent responses occur on-site, the search is carried out with the assistance of pre-arranged police officers.

Delinquents often deny involvement on-site, claiming they "live hand-to-mouth," "lack the ability to pay," or that "this property does not belong to me." However, because the NTS thoroughly collects evidence of luxurious lifestyles or assets hidden under borrowed names before entering a site, it continues strong collection efforts against such excuses.

1.4 billion won found in a 7-pyeong officetel safe; tracking expands to virtual assets

The most dramatic case involved a delinquent who withdrew all income earned from 20 years of business immediately after a tax audit to hide it. After a sham divorce from a spouse, the individual hid in a small officetel obtained under the name of an employee at the business they operated. Through a month of stakeouts and inquiries, the NTS located the officetel and opened a large safe, securing 1.4 billion won in cash hidden within the space of approximately 7 to 8 pyeong.

Recently, methods of concealing assets have been expanding beyond cash and real estate into virtual assets. The NTS carries out recovery by seizing claims, such as rights to monetary returns, for virtual assets held by delinquents through exchanges. Furthermore, for virtual assets hidden in personal electronic wallets, the NTS is ensuring full recovery by taking measures to forcibly transfer them to a custody address designated by the NTS.

When the deadline on a tax payment notice passes, a demand notice is issued for the unpaid national tax. If payment is still not made, assets can be seized in accordance with the National Tax Collection Act. Seized assets are then passed to public auctions through the Korea Asset Management Corporation, Seoul Auction, or K Auction, and the sale proceeds are paid into the national treasury.

Source: original video (YouTube)