What kind of punishment do I receive if I am reported for tax evasion?

Tax evasion is regarded as an act that goes beyond mere reporting omission and can transfer the tax burden to others or cause social damage.

Therefore, when a tax evasion report is received, the National Tax Service proceeds with investigation and punishment procedures under the Punishment of Tax Offenses Act.

According to Article 3 of the Punishment of Tax Offenses Act, in cases where taxes are evaded by fraud or unlawful means, or where refunds or deductions are unfairly received, generally the punishment is imprisonment of up to 2 years or a fine of up to twice the amount of tax evaded, refunded, or deducted.

In particular, if tax evasion is committed habitually, the sentence can be aggravated, and if the evaded tax amount exceeds a certain standard, more severe punishment is applied.

▶ Evaded tax amount of 300 million won or more, or 30% or more of the tax declared/paid

▶ Evaded tax amount of 500 million won or more

In this case, imprisonment of up to 3 years or a fine of up to 3 times the evaded tax amount may be imposed.

In other words, since tax evasion may have both imprisonment and fines depending on the amount and recurrence, if you have been reported, it is important to respond from the early stage with a tax specialist attorney.