CONTENTS
- 1. The Client Accused of Issuing False Tax Invoices
- 2. Daeryun's Assistance to Defend Against Punishment for False Tax Invoices
- - Arguing That the Client Was Not Aware of the Offense
- - Arguing That the Client Suffered a Greater Loss
- 3. Client Accused of Issuing False Tax Invoices Successfully Defended With a Suspended Sentence
- - If You Need Related Legal Assistance
1. The Client Accused of Issuing False Tax Invoices
Daeryun stepped in to assist a client who was indicted on a charge of issuing false tax invoices.
Through a thorough consultation, Daeryun set out to ascertain the circumstances under which the client came to issue the false tax invoices.
The client, as the representative of a shell company, agreed to receive consideration of about 3 million won per month from an acquaintance and established a corporation with no substance whatsoever, after which he carried out the work of issuing or receiving tax invoices without any actual transactions.
Although he had not been supplied with any goods or services, he received tax invoices for about 3.5 billion won as if he had been supplied with them.
By thus issuing tax invoices for profit without being supplied with goods or services, he came to be indicted on a charge of issuing false tax invoices.
Relevant Statutes
🔗The Punishment of Tax Evaders Act is punished particularly severely.
Then, under which statute is the issuance of a false tax invoice punished?
2. Where the aggregate amount of the supply value, etc. is 3 billion won or more but less than 5 billion won, the person shall be punished by imprisonment with labor for at least 1 year.
(3) A person who, without supplying or being supplied with goods or services, commits any of the following acts shall be punished by imprisonment with labor for not more than 3 years or by a fine not exceeding three times the amount calculated by applying the value-added tax rate to the supply value.
1. The act of issuing or being issued a tax invoice under the "Value-Added Tax Act"
2. Daeryun's Assistance to Defend Against Punishment for False Tax Invoices
For the client in the false tax invoice case, Daeryun Law Firm assembled a team of 🔗specialized attorneys in tax-related civil, criminal, and administrative cases to defend the client.
Arguing That the Client Was Not Aware of the Offense
The Daeryun specialized attorney team argued that the client was not aware of the fact that he was taking part in the offense of issuing false tax invoices.
In fact, the client was told by an acquaintance only that it was ‘simply work of issuing tax invoices and transferring employees’ salaries.’
The client merely performed work such as issuing or receiving tax invoices as instructed, without knowing whether the acquaintance and his associates had the purpose of evading taxes or committing economic crimes.
Arguing That the Client Suffered a Greater Loss
The Daeryun specialist attorney team argued that the loss the client suffered was greater than the benefit obtained from issuing the false tax invoices.
The client was supposed to receive 3 million won per month in return for receiving the false tax invoices, but he did not even receive this properly.
Because he was listed as the representative of a shell company, he paid all of the value-added tax and comprehensive income tax with his own money.
The client even lacked the money to pay the taxes and paid them by taking out a loan, so he was in a situation in which the harm exceeded the benefit obtained from issuing the false tax invoices.
3. Client Accused of Issuing False Tax Invoices Successfully Defended With a Suspended Sentence
Accepting the arguments of the Daeryun specialist attorney team, the court imposed a suspended sentence on the client charged with the false tax invoice offense.
The court decided on the suspended sentence, taking into account that ▲the client did not take a leading role in the tax evasion, ▲the benefit they gained was relatively minor in light of the content and scale of the false tax invoices, and ▲they had no prior record of the same type of false tax invoice offense.
If You Need Related Legal Assistance
Payment of taxes is an essential responsibility imposed on every citizen engaged in economic activity.
In particular, the issuance of false tax invoices is regarded as a serious crime that threatens the foundation of the value-added tax, which accounts for a large share of internal taxes, and it is punished all the more severely.
Where the Punishment of Tax Evaders Act has been violated, as in the issuance of false tax invoices, the degree of punishment varies depending on the preparation and process of proof, so obtaining the help of a specialist attorney is the safest course.
Daeryun LLC provides one-stop assistance through the entire process, from consultation to trial.
If you need legal help relating to false tax invoices, you are welcome to reach out to Daeryun LLC, which provides 🔗legal consultation in the most secure and convenient manner.
This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
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