
Legal Q&A
Q
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I recently received a sudden notice of a tax investigation, and since it is my first tax investigation, I am quite flustered. I am not sure what I should check on the first day of the investigation, or how much of the material the investigating officials request I must submit. I have also heard that in some cases they come to investigate directly without prior notice, and since I received notice in the normal way, I am curious about that difference as well. Because I am increasingly worried by talk that the scope of the investigation could expand further, I am considering whether I should get a tax consultation in advance and prepare a response strategy. How would it be best to respond? Would it be good to get a tax consultation?
Tax consultation
Answer
Published:
Author : ChanWoo JEONG
When you are subject to a tax investigation, you should first check the legality of the procedure, and if possible, it is important to set a basic direction of response through a tax consultation at the early stage of the investigation.
On the first day of the investigation, you should check the investigating officials' identification cards and investigator credentials and accurately review the tax items, taxation period, and grounds for investigation stated in the tax investigation notice.
Please also confirm whether you received the Charter of Taxpayer Rights and an explanation of it.
The submission of materials may be required only within the scope related to the purpose of the investigation, and books and supporting documents that you are legally obligated to prepare and keep must be submitted.
However, if a request goes beyond the scope of the investigation or is excessive, you may raise an objection.
If you refuse the investigation without a justifiable reason or make false statements about tax-related matters, disadvantages may arise, so a careful response is necessary.
Prior notice is, in principle, given to guarantee the taxpayer's right of defense, but it may be omitted where exceptional circumstances exist, such as a concern about the destruction of evidence.
In addition, if additional suspicions of tax omission are confirmed during the investigation, the scope of the investigation may be expanded through the proper procedures.
Because the future tax amount and additional tax burden can vary depending on the direction of the initial response, it is advisable to sufficiently discuss a tax consultation and a tax investigation response strategy with a tax attorney before the investigation begins or at its early stage.
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ChanWoo JEONG
T. 070-5221-2387
Extensive corporate legal litigation and advisory experience · Attorney specializing in inheritance/tax/administrative law

YoungKon CHO
T. 070-7510-2014
Experience as Head of the Seoul Central District Prosecutors' Office · Attorney Specializing in Criminal Law/Sex Crimes/Drugs

InWon KIM
T. 070-7510-1044
Former Chief Prosecutor [Criminal], Seoul Central District Prosecutors' Office · Attorney Specializing in Criminal Law/DUI Traffic/Accounting Audit/Evidence Examination
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