CONTENTS
- 1. Pre-assessment Review | The System and Its Significance
- - Features of the System
- 2. Pre-assessment Review | Eligible Subjects and Requirements for a Request
- - Eligible Subjects of a Request
- - Requirements for a Request
- 3. Pre-assessment Review | Processing Procedure
- - Processing Procedure at the Tax Office and Regional Tax Office
- - Processing Procedure at the National Tax Service
- 4. Pre-assessment Review | Preparing the Request
- - Components of the Request
- - Purpose of the Request
- - Grounds for the Request
- 5. Pre-assessment Review | Decision and Effect
- - Deadline for the Decision
- - Effect of the Decision
- - Deferral of Assessment
- 6. Pre-assessment Review | Response Strategy
- - Where Proof of a Normal Transaction Is Possible
- - Where There Is a Dispute over Statutory Interpretation
- - Where It Is an Unintentional Mistake
- 7. Pre-assessment Review | Checklist
- - Assistance System of Tax Specialist Attorneys
1. Pre-assessment Review | The System and Its Significance
A pre-assessment review is a system that notifies the taxpayer of the planned assessment in advance, before a tax is imposed based on the results of a tax investigation or audit, and allows the taxpayer to object to it.
Unlike post-assessment appeal procedures, this system makes it possible to resolve problems at the pre-assessment stage, and it has the following effects.
∙ Protects the taxpayer's rights and eases the economic burden
∙ Secures transparency and reliability in tax administration
Features of the System
It has become established as a pre-relief system that prevents unjust taxation and protects taxpayers' rights while also reducing the burden of time and cost.
: The taxpayer can resolve the issue without resorting to later procedures such as litigation or an objection
∙ Time savings
: Resolution is possible within a relatively short period compared with procedures such as an objection or a request for adjudication
∙ Administrative efficiency
: It can reduce the waste of administrative resources and prevent unnecessary disputes
2. Pre-assessment Review | Eligible Subjects and Requirements for a Request
A pre-assessment review may be requested by a taxpayer who has received notice of a planned assessment, such as a notice of the results of a tax investigation or a notice of advance assessment following an audit.
In other words, a request is possible only where the taxpayer has received advance notice of an assessment from the tax authority before the tax is imposed.
Eligible Subjects of a Request
A pre-assessment review may be requested where the taxpayer has received one of the advance notices of assessment listed below.
Category | Whether a request is possible |
Notice of the results of a tax investigation | Possible |
Notice of advance assessment following an audit | Possible |
Matters of statutory interpretation | Possible |
Requirements for a Request
A pre-assessment review must be requested within 30 days from the date of receiving the advance notice of assessment.
The requesting agency for each type of notice is as follows.
Category | Requesting agency |
Notice of the results of a tax investigation | The head of the relevant tax office or the commissioner of the regional tax office |
Notice of advance assessment following an audit | The commissioner of the regional tax office or the Commissioner of the National Tax Service |
Matters relating to statutory interpretation | The Commissioner of the National Tax Service |
The request may be submitted in person by visiting the competent tax office or the National Tax Service, or by mail.
3. Pre-assessment Review | Processing Procedure
A pre-assessment review is decided after a set deliberation procedure following the taxpayer's request.
The procedure varies somewhat depending on the requesting agency, and each agency must render a decision within 30 days from the date of receipt.
Processing Procedure at the Tax Office and Regional Tax Office
Stage | Description |
① Submission of the request | The taxpayer submits a pre-assessment review request to the competent tax office or regional tax office |
② Receipt and registration | The civil affairs office receives the request and issues a receipt |
③ Review by the Taxpayer Protection Officer | After reviewing the request, the deliberation materials are prepared※ Supplementation may be requested if necessary (within 20 days) |
④ Deliberation by the National Tax Review Committee | The Taxpayer Protection Officer forwards the deliberation materials to the committee, which then conducts the deliberation |
⑤ Decision by the head of the tax office | Based on the deliberation results, the head of the tax office decides whether to impose the tax (acceptance or non-acceptance, etc.) |
⑥ Notice of the result | The result is given to the requester within 30 days |
Processing Procedure at the National Tax Service
Stage | Description |
① Receipt of the request | The taxpayer submits the request to the National Tax Service or the competent tax office |
② Review by the Taxpayer Protection Officer | Review Officers 1 and 2 prepare the deliberation materials and may request supplementation (within 20 days) |
③ Deliberation by the National Tax Review Committee | The committee within the National Tax Service conducts the deliberation |
④ Decision by the Commissioner of the National Tax Service | The Commissioner of the National Tax Service makes the final decision based on the deliberation results |
⑤ Notice of the result | The decision is given to the taxpayer (within 30 days) |
※ As a rule, all procedures are processed within 30 days, but in unavoidable cases the processing period may be extended.
4. Pre-assessment Review | Preparing the Request
The pre-assessment review request must be prepared in accordance with Form No. 56-2 or No. 56-3 of the Enforcement Rules of the Framework Act on National Taxes, and clear facts and supporting evidence are key.
Components of the Request
The request submitted when filing a pre-assessment review must be prepared clearly and specifically according to the structure below.
Category | Main contents |
Purpose of the request | State the request for correction of the advance notice of assessment |
Grounds for the request | Explain specifically why the planned assessment is unlawful or unfair |
Supporting evidence | Documents that can support the asserted facts must be attached |
Purpose of the Request
State accurately the name of the tax office that issued the advance notice of assessment, the date of notice, and the tax item and amount.
State clearly that there is an objection to the advance notice of assessment, and close with a request that it be corrected.
Example Sentence Form
Grounds for the Request
First, summarize the grounds on which the tax office intends to impose the tax.
It is enough to describe specifically the grounds for assessment, such as the false issuance of tax invoices, improper treatment of expenses, or omitted sales.
Next, describe specifically the reasons why the contents of the notice are unlawful or unjust.
- State the transaction details, receipt of goods, contract contents, and the like that can prove an actual transaction took place
- If there are statements of those involved, photographs, shipment records, and so on, note them as attached materials
∙ Fact of payment
- Describe in detail the date, amount, and means of payment (bank transfer, cash, etc.)
- List deposit slips, transfer records, and the like as attached materials
∙ Legal arguments and conclusion
- Argue that the tax office's determination differs from the facts and is unjust on legal grounds or in terms of interpretation
- Emphasize that it was a normal transaction, and request correction of the advance notice of assessment
5. Pre-assessment Review | Decision and Effect
A decision on a pre-assessment review has the same effect as a decision on an objection or a request for review, and the tax authority is bound by that decision.
Deadline for the Decision
The review is completed and a decision is made within 30 days from the date the request is received.
Effect of the Decision
In accordance with the decision, the tax authority corrects or confirms the planned assessment.
No separate appeal against this decision is possible.
Deferral of Assessment
As a rule, the tax notice is deferred until a decision is rendered.
6. Pre-assessment Review | Response Strategy
A pre-assessment review is not merely a presentation of opinion but a procedure in which the facts and the legal issues must be clearly established.
It is advisable to prepare in the following ways.
Where Proof of a Normal Transaction Is Possible
▷ Attach supporting materials such as third-party statements and related contracts
Where There Is a Dispute over Statutory Interpretation
▷ Highlight mitigating grounds such as a history of faithful filing and cooperation
Where It Is an Unintentional Mistake
▷ Highlight mitigating grounds such as a history of faithful filing and cooperation
7. Pre-assessment Review | Checklist
A pre-assessment review is an important system that allows a taxpayer to mount a legal defense at the pre-assessment stage.
Please be sure to check the following items.
Check item | Review question |
Whether a notice was received | Did you receive a notice of the results of a tax investigation or an advance notice of assessment? |
Compliance with the filing deadline | Is it within 30 days from the date the notice was received? |
Submission of the request | Have you submitted the request correctly to the tax office or the National Tax Service? |
Proof of the facts | Have you attached relevant evidence, such as transaction records and accounting documents? |
Confirmation of purpose | Is it a normal transaction without issues such as tax avoidance or false entries? |
Assistance System of Tax Specialist Attorneys
This law firm has a number of tax specialist attorneys registered with the Korean Bar Association, along with specialist attorneys who have an average of more than 10 years of experience.
This allows for practical legal support across the entire process, from filing a pre-assessment review to subsequent procedures such as objections and requests for adjudication.
If you cannot accept the outcome of an advance notice of assessment, we recommend that you promptly organize the facts, prepare supporting evidence, and establish a strategy for the request with the assistance of a tax specialist attorney.
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