Busan Tax Attorney Case | Busan Tax Attorney Establishes That the Defendant Was Not the Actual Business Owner, Obtaining a Suspended Sentence for Violation of the Punishment of Tax Evaders Act

Punishment of Tax Evaders Act, Article 3 (Tax Evasion, etc.) (1) A person who evades a tax or receives a refund or deduction of tax by fraud or other improper means shall be punished by imprisonment for not more than 2 years or by a fine not exceeding twice the amount of the evaded tax or the refunded or deducted tax (hereinafter referred to as the "evaded tax amount, etc."). However, in any of the following cases, the person shall be punished by imprisonment for not more than 3 years or by a fine not exceeding three times the evaded tax amount, etc.

1. Where the evaded tax amount, etc., is 300 million won or more, and that evaded tax amount, etc., is 30/100 or more of the tax amount to be reported and paid (in the case of a tax that the government assesses and collects based on the taxpayer's report, it means the tax amount to be determined and notified)

2. Where the evaded tax amount, etc., is 500 million won or more

(2) A person who commits the crime under paragraph (1) may be punished by both imprisonment and a fine according to the circumstances.

(3) Where a person who commits the crime under paragraph (1) files a revised return with respect to the evaded tax amount, etc., within 2 years after the statutory reporting deadline has passed under Article 45 of the Framework Act on National Taxes, or files a return after the deadline within 6 months after the statutory reporting deadline has passed under Article 45-3 of the same Act, the sentence may be mitigated.

(4) The sentence of a person who habitually commits the crime under paragraph (1) shall be aggravated by one half.

(5) The time of completion (consummation) of the regulatory offense provided for in paragraph (1) shall be classified as follows.

1. A tax that the government assesses and collects based on the taxpayer's report: The time when the payment deadline passes after the government determines or assesses the tax base of the relevant tax item. However, where the government cannot determine or assess the tax base of the relevant tax item because the taxpayer, for the purpose of evading tax, fails to report the tax base under the tax laws, it shall be the time when the reporting deadline for the tax base of the relevant tax item passes.

2. A tax not falling under subparagraph 1: The time when its reporting and payment deadline passes

(6) In paragraph (1), "fraud or other improper means" means an active act falling under any of the following subparagraphs that makes the assessment and collection of tax impossible or significantly difficult.

1. False bookkeeping, such as the preparation of double books

2. The preparation and receipt of false evidence or false documents

3. The destruction of books and records

4. The concealment of property, or the manipulation or concealment of income, revenue, acts, or transactions

5. Intentionally failing to prepare or keep books, or the manipulation of invoices, tax invoices, aggregate invoices, or aggregate tax invoices

6. The manipulation of enterprise-wide resource management facilities under Article 5-2, subparagraph 1, of the Restriction of Special Taxation Act, or the manipulation of electronic tax invoices

7. Any other act by deceit (fraudulent scheme) or improper act