• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.717-725
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• 2021

The study answers the awareness of taxpayers, tax authority services, tax socialization, tax collection, and account representative's controlling (monitoring) for compliance of the corporate Taxpayer. The study also examines the moderating effect of the tax audit to control the corporate Taxpayer's compliance. In this study, the method of non-probability sampling was used. The research data was gathered by handing out questionnaires at the Medan Kota Tax Office in Indonesia. The SEM method was used for data analysis through Lisrel 8.8 program. The findings of the study concluded that tax collection has a significant positive effect on corporate taxpayer's compliance and Tax audit moderates the relation between tax authority services and the account representative's controlling (monitoring) with corporate taxpayers' compliance. Also, tax socialization and account representative's controlling (monitoring) have a positive effect on the corporate taxpayer's compliance. In contrast, variables of taxpayer's awareness and tax authority services have a negative impact. Furthermore, tax audit does not moderate the relation between taxpayer awareness, tax socialization, and tax collection with the corporate taxpayer's compliance at Medan Kota Tax Office Indonesia. The findings suggest the Indonesian policymakers and tax authorities must create corporate legislation to handle compliance by leveraging the loopholes in tax legislation law and the tax audit system.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.46
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• pp.351-380
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• 2010

Multinational Enterprises set the prices for transactions between affiliates based principally on their global interest. But the customs authority in Korea wants to set the arm's length price as high as possible to get higher dutiable value for customs purpose, while the internal tax authority in Korea prefers lower arm's length price to get higher value for corporation tax purpose by cutting costs. Problem caused by the inconsistent valuation methods on the same imported goods of the two tax authorities is the single most important tax issue facing multinational enterprises. In the meantime, the customs authority in Korea has thought that it is a universal trend worldwide for the Customs and Internal tax authorities to adopt different methods of valuation on transfer prices between related parties, so KCS couldn't accept APA prices. But the internal tax authority in Korea has taken the initiative in APA program so NTS provided taxpayer with safe-harbor. Recently, KCS created the Advance Customs Valuation Arrangement(ACVA) provisions in the 2008 revision bill of the Customs Act through benchmarking APAs program. Can APAs work for customs? Neither WCO or OECD presents any recommendation on the integration of the valuation methods, but calls for close cooperation between two authorities, which still leaves taxpayers very unstable. We will start to seek ways to integrate the customs valuation and transfer pricing in this study.

• Asia-Pacific Journal of Business
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• v.8 no.2
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• pp.31-39
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• 2017

Countries around the world have been engaging in automatic exchange of information to tackle tax evasion. The same goal became the basis of the enactment of the Foreign Account Tax Compliance Act (FATCA) by the United States Congress. In order to establish a common approach to counter tax evasion among different countries, the Organization of Economic Cooperation and Development (OECD) released the Standard for Automatic Exchange of Financial Account Information in Tax Matters which consists of the Competent Authority Agreement (CAA) and the Common Reporting Standard (CRS). Specifically, the automatic exchange of information is the exchange of financial account information between Tax Authorities in relevant countries. The law requires this information to be collected by financial institutions around the world for reporting to Tax Authorities. Automatic exchange of Information is made up of two information sharing frameworks: The Foreign Account Tax Compliance Act (FATCA) and The Common Reporting Standard (CRS). Under the automatic exchange of information, all financial institutions must identify accounts held by customers who are foreign tax residents or entities connected to foreign tax residents. Financial institutions must report these to the relevant Tax Authority who will then automatically exchange the account information with the relevant foreign Tax Authorities. Korean government has enacted domestic laws to require financial institutions to collect and report this information and has entered into international agreements to exchange the information with other governments. This paper analyzed the FATCA and CRS rules overall and proposed solutions for the legal and practical issues. This paper contributes to the existing literature on the automatic exchange of information by considering two information sharing frameworks.

• Tribology and Lubricants
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• v.36 no.3
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• pp.161-167
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• 2020

Petroleum is the most used energy source in Korea with a usage rate of 39.5% among the available 1st energy source. The price of liquid petroleum products in Korea includes a lot of tax such as transportation·environment·energy tax. Thus, illegal production and distribution of liquid petroleum is widespread because of its huge price difference, including its tax-free nature, from that of the normal product. Generally, illegal petroleum product is produced by illegally mixing liquid petroleum with other similar petroleum alternatives. In such case, it is easy to distinguish whether the product is illegal by analyzing its physical properties and typical components. However, if one the components of original petroleum product is added to illegal petroleum, distinguishing between the two petroleum products will be difficult. In this research, we inspect illegally produced gasoline, which is mixed with methyl tertiary butyl ether (MTBE) as an octane booster. This illegal gasoline shows a high octane number and oxygen content. Further, we analyze the different types of green dyes used in illegal gasoline through high performance liquid chromatography (HPLC). We conduct component analyses on the simulated sample obtained from premium gasoline and MTBE. Finally, the illegal gasoline is defined as premium gasoline with 10% MTBE. The findings of this study suggest that illegal petroleum can be identified through an analytic method of components and simulated samples.

• Management & Information Systems Review
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• v.8
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• pp.129-146
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• 2002

This study reviews an overview of the current tax support system in Local Tax Law for venture company. And this study provides the directions for developing tax support system in Local Tax Law related policy for the venture company in Korea. The tax authority provides a supporting directions of venture company in three ways: a financing viewpoint, a technical and manpower viewpoint, and the location viewpoint. And the supporting system for venture company is devide into tax support system through tax laws and support system through other law. The requirements of receiving tax supporting for venture company in Local Tax Law are a venture company, a small and medium company, a newly starting firm, and so forth. To mitigate the restriction imposed by the current tax law on venture company encourage venture activities in Korea.

• KDI Journal of Economic Policy
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• v.24 no.2
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• pp.53-82
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• 2002

Earlier papers, regarding this topic, have shown that the optimal environmental tax rate under the second best situation typically smaller than that under the first best world, the well known Pigouvian tax. This paper casts a doubt on the generality of this result, since the conclusion was derived from the models which employed rather strict assumptions on the utility function, which is homothetic and separable. This paper, with simple-static CGE model, shows that the result of earlier studies is sensitive to the assumption on the utility function. According to the simulation results, as previous studies pointed out, if the utility function is assumed to be homothetic, the optimal environmental tax rate is smaller than the Pigouvian tax. In contrast, if certain type of non-homotheticity is allowed, the optimal environmental tax rate could be greater than the Pigouvian tax. The results of this simulation also imply that the enlargement of environmental tax base could enhance the efficiency of overall tax system. Hence, there will be a less burden to share for the tax authority from the policy change.

• Journal of Digital Convergence
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• v.2 no.2
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• pp.45-62
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• 2004

E-commerce is now a familiar form of commercial transaction, especially in the transactions between businesses. This online transaction poses a good deal of problems to the traditional tax system and administration. Realignment of tax system and tax administration in the e-commerce is one of the major topics on the International problem. In the area of consumption tax, they reaffirmed the destination principle. They agreed to decide the recipient's business presence and usual residence as the place of consumption. In the area of consumption tax, they reaffirmed the destination principle. They agreed to decide the recipient's business presence and usual residence as the place of consumption. Currently, the Korean VAT law does not have a basis for taxation on international transactions that are considered to be services. Considering the tax revenue loss and the inequality between domestic suppliers and foreign suppliers when international transactions are not taxed, the Korean Tax Authority needs to amend the current law.

• Management & Information Systems Review
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• v.4
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• pp.443-467
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• 2000

This study reviews an overview of the current tax support system for venture company and provides the directions for developing tax support system related policy for the venture company in Korea. The tax authority provides a supporting directions of venture company in three ways: a financing viewpoint, a technical and manpower viewpoint, and the location viewpoint. And the supporting system for venture company is devide into tax support system through tax laws and support system through other law. The requirements of receiving tax support for venture company are a venture company, a small and medium company, a newly starting firm, and so forth. To mitigate the restriction imposed by the current tax law on venture company encourage venture activities in Korea.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.187-198
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• 2020

This study investigates the determinants of the likelihood of a tax re-audit in Korea. It adopts a researcher-administered questionnaire survey method for data collection. The survey questionnaire is randomly distributed to 1,120 individuals with tax-related knowledge and experience. Using a final sample of 342 responses, we conduct a cross-sectional regression analysis to test our hypotheses. The results show that the level of tax non-compliance significantly affects the likelihood of a tax re-audit. This finding suggests that the increase in re-audits in Korea is attributable to the tendency of the tax authority to conduct a re-audit to detect taxpayers' non-compliance behavior by excessively broadening the scope of re-audits. This study also finds that the level of tax non-compliance is influenced by the perception of procedural unfairness, measured by operational inconsistency and regulatory lack of clarity. Lastly, the results reveal that the level of tax non-compliance mediates the relationship between the perception of procedural unfairness and likelihood of a tax re-audit. This finding indicates that enhancing procedural fairness could fundamentally reduce unnecessary re-audits that infringe on the rights of taxpayers, as the likelihood of a tax re-audit is not solely determined by the level of tax non-compliance but also by perceived procedural fairness.

• Journal of Digital Convergence
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• v.12 no.2
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• pp.173-182
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• 2014

The government aims at promoting the national growth and heightening efficiency through the creativity economy. This study focus on the effectiveness(difference of the tax bearance) of tax-aid system(tax-reduction and tax-deduction) for the venture firms and small & medium firms. Sampling of this study was collected through what had been recorded to the enterprise information service of Korcham(venture firms), DB of Small & Medium Business Administration Authority from 2010 to 2012, and opened information of the KOSDAQ Association. The results were as follows. Firstly, There exists differences in the tax bearance rate between the tax-aided corporation and the tax-nonaided corporation through venture firms and small & medium firms. Secondly, Venture firms were investigated to bear low tax-bearance rate in contrast to Small & Medium Firms. The results of this study shows that the national tax-aided system is effective, and can be led to another new politics alternatives.