
Legal Q&A
Q
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An acquaintance I know has been making cash transactions for a long time and has not been properly reporting taxes. The transaction amounts are quite large, and there are also circumstances suggesting that the business is being operated under another person's name. In such a case, I am curious whether I can receive a reward if I report the fact of the tax evasion. I am worried that the acquaintance might find out that I reported it.. And I would also like to know whether the criteria or procedure for paying the reward are complicated.
Tax evasion
Answer
Published:
Author : ChanWoo JEONG
Yes, if you are aware of another person's clear tax evasion, as in your case, you can report the tax evasion to the National Tax Service and receive a reward.
The National Tax Service operates a 'reward system for reporting tax evasion' to realize tax justice and fair taxation.
The reward is capped at 4 billion won and is paid by applying a certain payment rate (5 to 20%) to the evaded tax collected as a result of the tax evasion report.
The reporter's identity is thoroughly protected under the Act on the Protection of Public Interest Reporters and other laws, and reporting is also possible anonymously.
However, the content of the report must be specific and based on facts, and mere assumptions or speculative information are not accepted.
Therefore, it is advisable to report only after sufficiently securing supporting materials related to the tax evasion (such as contracts, deposit records, and conversation records).
You can report through the 'Tax Evasion Report Center' on the National Tax Service website, or by visiting a tax office, or by calling 126.
Payment of the reward usually takes several months or more, and the National Tax Service's investigation must be completed and the collected tax amount must actually be finalized.
If you receive an expert's advice during the reporting process, you can report more systematically and safely.
Daeryun Law LLC provides legal advice on reporting and tipping off tax evasion and on the reward claim procedure.
In addition, it assists by thoroughly reviewing the matter legally so that no disadvantage arises.
If you would like a consultation before reporting tax evasion, we recommend that you reach out to our firm and seek assistance.

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