What should I prepare for an upcoming corporate tax investigation?

A corporate tax investigation usually begins with receiving advance notice of the tax investigation up to 15 days before the investigation commences.

At this stage, it is important to confirm the period and tax items subject to the investigation, and to review whether to file an application to postpone the tax investigation, to change the investigation location, or to apply for a deferral of the tax investigation.

In particular, in the case of job-creating companies or startups and innovative small and medium-sized enterprises, a deferral of the corporate tax investigation is possible if the requirements are met, so a prior review is necessary.

At the commencement of the investigation, after confirming the identity of the investigating official, you will receive an explanation of the Charter of Taxpayers' Rights, and you may receive assistance from a tax agent or an attorney specializing in tax.

A corporate tax investigation must be conducted within the minimum necessary scope, and if your rights are infringed by an unlawful or excessive investigation, relief of rights through the Taxpayer Protection Officer is also possible.

When the investigation ends, you will receive notice of the result within 20 days, and you can review the procedure for paying the tax amount or whether to apply for a deferral of collection.

If you have an objection to the result of the investigation, it is also possible to obtain relief of rights through an appeal procedure.

Because an initial response is important in a corporate tax investigation, we recommend a strategic review from the preliminary stage.