How heavy is tax evasion punishment? I am also curious about cases where it can be reduced.

Hello. This is the tax specialist attorney at Daeryun Law Firm (LLC).

Tax evasion punishment is very strictly carried out depending on the size of the evaded tax amount under not only the "Punishment of Tax Offenses Act" but also the "Act on Aggravated Punishment of Specific Crimes."

If the annual evaded tax amount is 500 million won or more but less than 1 billion won, imprisonment of 3 years or more is imposed, and if it is 1 billion won or more, life imprisonment or imprisonment of 5 years or more may be imposed.

In addition, a fine of 2 to 5 times the evaded tax amount is necessarily imposed concurrently.

However, not all cases are punished the same way, and they can be reduced or aggravated according to specific circumstances.

▶ Reduction Reasons

ㆍ When actual gains are minor

ㆍ When it is clear that only the payment time was delayed

ㆍ When it is limited to dolus eventualis

ㆍ When there is no criminal punishment record

ㆍ When there were unavoidable circumstances such as economic pressure

ㆍ When the evaded tax amount is voluntarily paid or willingness to pay is shown

On the other hand, in the following cases, tax evasion punishment may be greatly aggravated, so special caution is needed.

▶ Aggravation Reasons

ㆍ When there is a record of the same type of crime

ㆍ When it was carried out in a planned and organized manner

ㆍ When property concealment or name disguise was involved

ㆍ When property was concealed or name was dispersed for the purpose of avoiding taxation

ㆍ When experts such as tax accountants, certified public accountants, and attorneys intervened to lead or assist the crime

As such, the level of punishment for tax evasion is determined by comprehensively considering not only the size of the tax amount but also the circumstances of the crime and the overall post-response.

If tax evasion becomes an issue, it is important to organize the facts and sentencing factors and establish a response strategy through advice from a tax specialist attorney from the early stage.