Daeryun Law Firm takes preemptive response to tax evasion risks

Interview with Attorney Won-il Won, Head of Corporate Legal Group, and Naewon Kwak, Head of Tax Administration Group
Preemptive response including corporate tax and income tax reduction, tax authority investigation, false tax calculation, and tax offender punishment.

Daeryun Law Firm's Corporate Legal Group and Tax Administration Group announced that they are taking preemptive action against tax evasion risks. Daeryun said it recently moved its headquarters to Yeouido and set the goal of strengthening its capabilities in the financial and tax fields and corporate legal affairs.

The Corporate Legal Group plans to effectively resolve cases related to tax evasion crimes by linking with the Tax Administration Group. In particular, depending on the scale of the incident, a task force team of 3 to 20 people, including lawyers specializing in corporate law, taxation, civil and criminal matters, accountants, and digital forensics experts, will be formed to respond.

Chief attorney Won Won-il, head of the Daeryun Corporate Legal Group, and chief attorney Naewon Kwak, head of the tax administration group, expressed opinions on the 24th emphasizing the importance of consulting with legal experts, especially in recent tax evasion cases.

Regarding the fact that the National Tax Service has recently been conducting intensive tax investigations on small and medium-sized businesses that received corporate tax and income tax reductions, Attorney Won-il Won said, "Many support measures have been introduced to reduce corporate and income tax within a certain percentage for companies that are dispersed across regions and to control overcrowding when starting a business outside of an area." He added, "As the amount of tax reduced through the special tax system became significant, it was necessary to check whether it was used for the right purpose at the national level, and it could also be used to supplement the tax revenue that is currently lacking. “It was intended to be so,” he said.

He explained, “A significant amount of tax investigations are being conducted targeting small and medium-sized businesses that were founded at the time.”

Attorney Kwak Nae-won said, "Our firm also responds to various tax investigations. There are many cases where people are too nervous just because a tax investigation is starting and are unable to claim what they can legitimately claim. Furthermore, there are many cases in which cases that could be handled as simple tax collections are converted into tax violation cases by concealing data or submitting false data to reduce the amount of tax to be collected." He added, "Even if you are subject to a tax investigation, consult with an expert and proceed in accordance with the substance of the transaction. “There are surprisingly many cases where an explanation can persuade the tax authorities, so it is advantageous to get help from an expert rather than trying to solve the problem on your own,” he advised.

Attorney Won shared his experience with a tax case that felt somewhat difficult and emphasized, "A tax investigation is a little different from the interpretation of ordinary legal acts. Since the person who actually transacts in accordance with the law is at issue, if you are involved in a related case, what you think and what you see from an accounting or taxation perspective may be different, so you definitely need to consult with an expert."

Meanwhile, Attorney Kwak also introduced his experience as a judge at the court and said, "I have dealt with taxation and administration as a special field, and I have encountered countless cases during my 20 years of working as a lawyer, but the field of taxation and administration is always a difficult field. Therefore, if you have to start a difficult tax or administrative lawsuit, it is best to request it from a lawyer who is an expert in that field."

When asked about Daeryun's strengths in tax evasion cases, Attorney Won said, "In the case of Daeryun, △a lawyer with experience directly responding to tax investigations while working for a company △lawyers from courts, prosecutors, and police who have directly handled various tax-related criminal and administrative cases, including violations of the Tax Criminal Punishment Act; △accountants in charge of the tax department at major domestic accounting firms such as Samil and Samjung Accounting Corporation, providing one-stop service from the start of a tax investigation to the final court ruling. “The advantage is that we can provide it,” he said.

Attorney Kwak also said, "The first stage in which a tax evasion case begins is the tax investigation stage. During the tax investigation stage, it is most necessary to have sufficient communication with the National Tax Service official. It is important to explain the substance of the transaction through clear data or act as a stepping stone to ensure friendly communication between the three parties so that the case can be concluded in the form of payment of taxes even if the case is not resolved as intended. Daeryun primarily provides such services." He expressed a cautious stance, saying that this may be Daeryun's unique advantage.

Regarding the response plan when involved in a tax crime, Attorney Won said, "In the case of tax reduction cases related to youth start-ups or start-ups outside of overcrowding control areas, which are currently problematic, tax investigations are being conducted extensively on individual business owners, not companies. Depending on the amount of tax evasion or reduction, they can be sentenced to life imprisonment for violating the Act on the Aggravated Punishment of Specific Crimes, etc.," and "In the case of the cases I have recently taken on or consulted on, I have no experience in tax investigations as a self-employed person. “In many cases, they respond uncooperatively to the investigation by refusing to submit even the basic information requested by the tax authorities or hiding key information. If you explain the transaction while submitting the necessary information, it is surprisingly not difficult to persuade them, so I recommend consulting with an expert like Daeryun.”

Attorney Kwak introduced, "In recent cases in Daeryun, in cases where 'start-up' was an issue, a lawyer's opinion on the contents of the relevant contract was submitted and the company was recognized as a 'start-up' by the tax authorities and was exempted from the tax reduction," adding, "I emphasize this again and again, but if you are being investigated or investigated for related content, you must seek out an expert."

Regarding Daeryun's direction regarding corporate tax crimes, Attorney Won emphasized, "Corporations are quite conservative clients," and added, "It is important to refine the facts of the client's case and properly convey them to the tax authorities. If necessary, we will closely communicate and link up with other groups to resolve the case."

Regarding this issue, Attorney Kwak said, "If a corporate customer is suspected of tax evasion by the National Tax Service and is investigated, it is important to respond quickly by digging into the facts, laws and regulations, and legal principles with lawyers from the corporate legal group and certified public accountants within the corporation from the initial stage." He added, "We will do our best to ensure that the customer's interests are protected through legal procedures through participation in the National Tax Service investigation, investigation by investigative agencies, and trial."

[View full article] - Daeryun Law Firm takes preemptive response to tax evasion risks (Click here)