I have been reported for tax evasion. What punishment does one receive for committing tax evasion?

If you have been reported for tax evasion, you will be punished under the Punishment of Tax Evaders Act.

If you evade taxes or receive a refund or deduction by fraud or other improper means, you are subject to imprisonment with labor for up to 2 years or a fine equivalent to up to twice the amount of the evaded tax or the refunded or deducted tax.

In particular, if the evaded tax is 300 million won or more and is 30% or more of the tax to be reported and paid, or if the evaded tax is 500 million won or more, imprisonment with labor for up to 3 years or a fine equivalent to up to three times the evaded tax and the like is imposed.

In practice, when there is a suspicion of tax evasion above a certain amount or when the collection of evidence is necessary, a tax offense investigation is conducted after deliberation by the Tax Offense Investigation Deliberation Committee.

In this process, if active acts of tax evasion are confirmed, such as keeping double books, creating false supporting documents or records, destroying books or records, concealing property, manipulating or concealing transactions, and giving or receiving false tax invoices, legal dispositions such as a notice of penalty or an accusation are issued.

If you have been reported for tax evasion, under the Punishment of Tax Evaders Act imprisonment and a fine may be imposed concurrently, but if certain requirements are met, the sentence may also be mitigated.

Therefore, because a tax evasion charge is a serious matter, you should respond strategically from an early stage with the assistance of an attorney with relevant expertise, through which you can also seek mitigation of punishment or minimization of disadvantages.