Tax Appeal Procedure

Which step are you at?

Select your current step and the content for that step will appear below.

1. 1Receipt of result notice / pre-assessment notice
2. 2Request for pre-assessment review
3. 3Payment notice
4. 4Objection (optional)
5. 5Filing a request for review or request for adjudication
6. 6Service of the written answer and submission of rebuttal materials
7. 7Statement of opinions and hearing
8. 8Decision and service of the written decision
9. 9Administrative lawsuit

• Basic step
• Additional action / option
• Rejection / objection
• End of procedure

Time required

Statutory decision periods are 30 days for a pre-assessment review, 30 days for an objection (60 days if a rebuttal is made), and 90 days for a request for review or adjudication, and they may be longer when correction periods, etc. are added; it takes longer if you go on to an administrative lawsuit

Cost

Fees for a request for review or adjudication are not set in the Framework Act on National Taxes, so check with the receiving body (National Tax Service or Tax Tribunal); tax agent and attorney fees are separate; small corporations, etc. that meet the requirements can apply for a state-appointed representative; stamp fees for an administrative lawsuit are separate

Procedure guide

Read from start to finish in order. Red text marks deadlines set by law.

1. 1

   When a tax audit ends, you in principle receive a result notice within 20 days of the date the audit ended (Framework Act on National Taxes §81-12(1)), and in cases such as where the tax to be assessed is KRW 1 million or more, you receive a pre-assessment notice (§81-15(1)). The date you receive this notice is the starting point of the period for requesting a pre-assessment review, so record the date. However, a pre-assessment review is not available in cases such as where there is a ground for collection before the payment deadline, where an accusation or notice of disposition for a tax offense is made (excluding unrelated tax items and amounts), or where 3 months or less remain in the exclusion period for assessment (§81-15(3)).

2. 2

   If there is something to dispute in the notice, file a request for a pre-assessment review within 30 days of receiving the notice (§81-15(2)). The authority receiving the request decides and notifies you within 30 days (§81-15(4)). If you accept the content of the notice, you can apply for an early decision (§81-15(8)). The late-payment penalty tax accrues by the number of days up to the day before the notice date (§47-4(1)1), so if the notice is brought forward, the period during which penalty tax accrues also shrinks.

3. 3

   When the head of the tax office issues a payment notice, this notice becomes the subject of the objection (the disposition) (§55(1)), and the 90-day objection period starts from the date you receive the notice. An objection does not stop enforcement of the disposition (§57(1)). So you must take care of payment as well, and if there is an urgent need to prevent serious harm, consider whether a decision by the deciding authority to stay execution (proviso to §57(1)) is possible.

4. 4

   Before a request for review or adjudication, you can file an objection with the head of the tax office or the commissioner of the regional tax office (§66). An objection is an optional procedure, and the deadline is 90 days from receipt of the assessment notice. The objection decision is issued within 30 days (60 days if a rebuttal is made), and you file a request for review or adjudication within another 90 days of receiving that decision (§61(2), §68(2)).

5. 5

   Within 90 days of receiving the assessment notice, file either a request for review with the Commissioner of the National Tax Service (§61) or a request for adjudication with the Tax Tribunal (§68). You cannot file both against the same disposition (§55(9)), and you cannot file an administrative lawsuit without going through one of them (§56(2)). The request for adjudication is submitted to the head of the tax office or the President of the Tax Tribunal (§69(1)). It can also be submitted through the information network operated by the President of the Tax Tribunal (§60-2(1)). Going through a request for review to the Board of Audit and Inspection (90 days from the date you learned of it, 180 days from the date it occurred) is also treated as meeting the requirement for a lawsuit (§56(5)).

6. 6

   The tax office that issued the assessment submits a written answer within 10 days of receiving the request for adjudication (§69(4)), and a copy is sent to the company (§69(6)). The company can submit evidentiary documents and items rebutting the answer (§71(1)). If the President of the Tax Tribunal sets a deadline and requests them, they must be submitted by that deadline (§71(2)); otherwise there is no separate statutory deadline, so prepare to submit enough before the hearing. If the request has defects, you may receive a request for correction setting a reasonable period (§80-2 → §63(1)), and the correction period is not included in the decision period (§65(4)).

7. 7

   The Tax Adjudicators' Meeting hears the case (§78). Small cases such as those where the amount claimed is less than KRW 50 million may be heard by the presiding tax adjudicator (§78(1), Enforcement Decree §62). The company can apply to state its opinions (§58), and if it does, it is notified by 3 days before the meeting date (by 7 days before for the first deliberation meeting) (Enforcement Decree §47(2)).

8. 8

   The Tax Tribunal decides within 90 days of receiving the request, with one of dismissal as improper, dismissal on the merits, acceptance or re-investigation (applying §65(2) mutatis mutandis). If a re-investigation decision is issued, the tax office re-investigates and makes a disposition within 60 days (§65(5)). If you disagree with the decision, file an administrative lawsuit within 90 days of receiving the decision notice (§56(3)). If no decision is issued within 90 days, you can file a lawsuit without waiting for the decision (proviso to §56(3)), and this litigation period is peremptory (§56(6)).

Frequently asked questions

Practical questions that come up right away in this procedure.

QDo I have to request a pre-assessment review?

No. A pre-assessment review (a request for review before the assessment notice) is a chance to dispute once more before the notice.Even if you skip it, you can dispute through an objection, request for review or request for adjudication after the notice. However, if you have clear grounds to dispute, it is better to consider this stage first, since things can be corrected before the notice.If you accept the content, you can apply for an early decision to bring the notice forward. That shortens the period during which the late-payment penalty tax accrues.

QWhat is the difference between a request for review and a request for adjudication?

A request for review is filed with the Commissioner of the National Tax Service, and a request for adjudication with the Tax Tribunal. For both, the deadline is 90 days from receipt of the assessment notice, and the decision period is also 90 days.You cannot file both against the same disposition, so you must choose one. Whichever you go through, you can file an administrative lawsuit if you disagree with the decision, and the same applies if you go through a request for review to the Board of Audit and Inspection.

QIs it better to file an objection first?

An objection is an optional procedure. If you go through an objection, you can file a request for review or adjudication within another 90 days of receiving its decision.However, because it adds a stage, reaching the final conclusion takes longer, so decide based on the issues and your schedule.

QIf I file an objection, do I not have to pay the tax?

No. An objection does not stop enforcement of the disposition.So if you do not pay, collection procedures may proceed. If the review or adjudication body recognizes an urgent need to prevent serious harm, it may decide a stay of execution (temporarily suspending the effect of the disposition). If you are worried about seizure, consider this as well.

QWhat if the decision on my request for adjudication is taking too long?

The Tax Tribunal must decide within 90 days of receiving the request. You may not receive the decision notice within this period.In that case, you can file an administrative lawsuit from the day after that period passes, without waiting for the decision. However, the time spent making corrections after a request for correction (a request to fix documents) is not counted in the 90 days.

QCan a company also apply for a state-appointed representative?

A small corporation that meets the requirements can apply. The corporation must have revenue of KRW 300 million or less and assets of KRW 500 million or less. The amount claimed must be KRW 50 million or less, and the tax must not be inheritance tax, gift tax or comprehensive real estate holding tax.The amount thresholds are based on the immediately preceding or the second preceding business year, depending on when you apply. After you apply, you are told the result within 5 days.