Procedure For The Punishment Of Tax Evaders Act


Published: 2010-01-01

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 Article 1 (Purpose)   print
The purpose of this Act is to provide for the simple and prompt disposition of cases related to the violation of Acts and subordinate statutes on taxes.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 2 (Interrogation, Search, and Seizure of Suspected Offenders, etc.)   print
When it is required to investigate tax offenses (hereinafter referred to as "tax offense"), public officials engaged in taxation (hereinafter referred to as the "tax official") may question suspects of such offenses or witnesses thereto or effect search or seizure.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 3 (Search and Seizure Warrant)   print
(1) Where a tax official is to effect search or seizure for the purpose of investigation into tax offenses, he/she requires a search and seizure warrant issued by a judge: Provided, That a seizure and search may be made without a warrant by showing a cause, in cases falling under any of the following subparagraphs:
1. Where an offense is in progress;
2. Where a suspected offender is likely to flee or destroy evidence and there is no time to procure a search and seizure warrant.
(2) A tax official shall apply for the issuance of a warrant to a prosecutor having jurisdiction over the location of employment of the tax official and, through the prosecutor's application for warrant, shall procure a warrant from a judge of a competent district court.
(3) Where a tax official makes a search and seizure without a warrant under the proviso to paragraph (1), he/she shall obtain a search and seizure warrant from a judge of the competent district court within 48 hours after the date of search and seizure.
(4) Where a tax official fails to obtain the warrant under paragraph (3), the seized articles shall be immediately returned to the person from whom such articles have been seized.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 4 (Application Mutatis Mutandis of Criminal Procedure Act)   print
The provisions concerning search or seizure and warrants thereof described in the Criminal Procedure Act shall apply mutatis mutandis to search or seizure and warrants thereof prescribed in this Act.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 5 (Preparation of Interrogation Statement)   print
When a tax official has questioned a person, searched a place, or seized or temporarily deposited articles, he/she shall record the circumstances surrounding such actions and, after giving an opportunity for the witness or the person questioned to confirm such record, shall cause such witness or person to sign and affix a seal thereto, jointly with him/her. Where the witness or the person questioned fails to sign or affix a seal, the reason for such failure shall be recorded in addition.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 6 (Jurisdiction Over Evidence and its Transfer)   print
(1) Any evidence in relation to a tax offense shall be collected by a tax official of the National Tax Service or by a tax official of a regional or district tax office having jurisdiction over the place in which the offense was discovered.
(2) Any evidence collected by a tax official of the National Tax Service shall be transferred to a tax official of the relevant regional tax office, and any evidence collected by a tax official of a regional tax office shall be transferred to a tax official of the relevant district tax office.
(3) Notwithstanding paragraphs (1) and (2), the Commissioner of the National Tax Service may independently dispose of important cases prescribed by Presidential Decree, among those cases in respect of which tax officials of the National Tax Service, regional tax offices, or district tax offices have collected evidence, and the director of a regional tax office may independently dispose of important cases prescribed by Presidential Decree, among those cases in respect of which tax officials of the regional office or district tax offices have collected evidence.
(4) Where evidence relating to the same tax offense has been discovered at several locations, the evidence collected at each location shall be transferred to a tax official of the district tax office which has jurisdiction over the initial location of discovery.
(5) Tax offense cases recognized by agencies other than the National Tax Service, regional tax offices, or district tax offices and by the public officials who belong thereto, shall be immediately transferred to the Commissioner of the National Tax Service, the director of the competent regional tax office, or the head of the competent district tax office.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 7 (Regional Jurisdiction of Tax Offense Investigation)   print
(1) The questioning, searching, seizure, and temporary depositing by a tax official, in accordance with this Act, shall be effected only in the area under jurisdiction of the office to which such tax official belongs: Provided, That exceptions are permitted where questioning, searching, seizure, or temporary depositing is required in the area under jurisdiction of another regional tax office or district tax office in connection with the tax offenses already under investigation.
(2) Where the head of a district tax office needs to investigate tax offenses outside the area under his/her jurisdiction, he/she may entrust such investigation to the head of a tax office which has jurisdiction over the relevant area.
(3) Where the director of a regional tax office needs to investigate tax offenses outside the area under his/her jurisdiction, he/she may entrust such investigation to the director of a regional tax office or the head of a district tax office which has jurisdiction over the relevant area.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 7-2 (Request for Cooperation of State Agencies)   print
(1) The Commissioner of the National Tax Service, the director of a regional tax office, or the head of a district tax office may request other State agencies to provide cooperation, if necessary to investigate tax offenses.
(2) A State agency which receives a request for cooperation in accordance with paragraph (1) shall comply with such request.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 8 (Reporting and Immediate Accusation)   print
When a tax official has completed an investigation of a tax offense, he/she shall file a report thereof with the Commissioner of the National Tax Service, the director of a regional tax office, or the head of a district tax office: Provided, That he/she may immediately accuse the relevant person in any of the following cases:
1. Where the actual dwelling place of a suspected offender is unknown;
2. Where a suspected offender is likely to flee;
3. Where evidence is likely to be destroyed.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 9 (Notification)   print
(1) Where the Commissioner of the National Tax Service, the director of a regional tax office, or the head of a district tax office believes, through the investigation of an alleged tax offense, that a person should be convicted of the violation, he/she shall, specifying the reasons, notify the relevant person to pay or surrender, at a designated place, an amount equivalent to the fine or penalty surcharge, the articles to be confiscated or forfeited, an amount equivalent to the additional imposition, and the expenses incurred in sending documents and transporting and keeping forfeited articles: Provided, That in regard to the articles to be confiscated or forfeited, he/she may notify the relevant person only to submit a report of surrender without actual surrender of such articles.
(2) Where an offender submits a report of surrender as notified by the notification under the proviso to paragraph (1) and continues possession of articles subject to forfeiture, the offender has a duty to keep such articles safe until public auction or other necessary disposition.
(3) Where an offender is deemed to have no means to perform what he/she has been requested to do, the Commissioner of the National Tax Service, the director of a regional tax office, or the head of a district tax office shall immediately accuse the offender without any notification under paragraph (1).
(4) Where the circumstances surrounding the offense are deemed to result in a prison sentence, the Commissioner of the National Tax Service, the director of a regional tax office, or the head of a district tax office shall immediately accuse the offender.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 10 (Suspension of Prescription for Prosecution)   print
In the event of notification under Article 9 (1), the prescription for prosecution shall be suspended.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 11 (Prohibition against Double Jeopardy)   print
Where an offender has performed what he/she was requested to do, the offender shall not be accused with regard to the same case.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 12 (Accusation)   print
(1) Where an offender fails to perform what he/she was requested to do within 15 days from the date of receiving notification, the Commissioner of the National Tax Service, the director of a regional tax office, or the head of a district tax office shall accuse the offender: Provided, That exceptions will be made where the offender has performed what he/she was requested to do before the accusation, even after the lapse of 15 days.
(2) Where a notification cannot be served, because the actual dwelling place of an offender is unknown or because an offender refuses to receive service of a notification, the Commissioner of the National Tax Service, the director of a regional tax office, or the head of a district tax office shall accuse the offender.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 13 (Transfer of Seized Articles)   print
(1) In the event of an accusation on tax offense, if any articles have been seized, the articles shall be transferred to the prosecutor, with a list of the articles.
(2) With respect to articles seized under paragraph (1), which are in the custody of the owner, possessor, or a Si/Gun, the certificate of custody issued by the custodian shall be transferred to the prosecutor, and the transfer of such certificate shall be notified to such custodian.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 14 (Notice of Freedom from Suspicion and Release of Seizure)   print
Where the Commissioner of the National Tax Service, the director of a regional tax office, or the head of a district tax office believes, after investigation of a tax offense, that a suspected offender has not committed a tax offense, he/she shall notify the suspected offender thereof and, when any articles have been seized, issue an order to release such seizure.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 15 (Scope of Tax Officials)   print
The scope of the tax officials prescribed in this Act shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
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 Article 16 (Payment of Reward)   print
The Commissioner of the National Tax Service may, as prescribed by Presidential Decree, pay a reward not exceeding one hundred million won to any person who provides important data in calculating the evaded, refunded or deducted tax amount of a person who violates the Punishment of Tax Evaders Act or in punishing the violator: Provided, That the reward shall not be paid where a public official provides such data in relation to his/her duties.
[This Article Wholly Amended by Act No. 9920, Jan. 1, 2010]
ADDENDA
Article 17
This Act shall enter into force 30 days after the date of its promulgation.
Article 18
The Ordinance on Punishment of Delinquent of Indirect National Tax of Chosun is hereby repealed.
Article 19
The provisions of Article 54-2 of the Income Tax Act and Article 34-1 of the Corporate Tax Act and the term "Article 54-2 of the Income Tax Act" in Article 27 of the Business Tax Act are hereby deleted.
Article 20
(1) This Act shall also apply to cases which occurred before the promulgation of this Act.
(2) The provisions of the preceding paragraph shall not hinder the effect of procedures taken in accordance with the Ordinance on Punishment of Delinquent of Indirect National Tax of Chosun before the enforcement of this Act.
(3) The procedures taken in accordance with the Ordinance on Punishment of Delinquent of Indirect National Tax of Chosun before the enforcement of this Act shall be deemed procedures taken in accordance with this Act, if any such procedures in this Act which correspond to the procedures under the above Ordinance are taken.
ADDENDUM<Act No. 781, Dec. 2, 1961>
This Act shall enter into force on January 1, 1962.
ADDENDA<Act No. 1210, Dec. 8, 1962>
(1) This Act shall enter into force on the date of its promulgation.
(2) Payments made to persons who supplied data in accordance with the provisions of Article 16 before the enforcement of this Act shall be governed by the former legislation.
ADDENDUM<Act No. 1716, Mar. 8, 1966>
This Act shall enter into force on the date of its promulgation.
ADDENDUM<Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA<Act No. 6071, Dec. 31, 1999>
(1) (Enforcement Date) This Act shall enter into force on January 1, 2000.
(2) (Application Example of Payment of Reward) The amended provisions of Article 16 shall apply on or from the initial provision of data concerning a tax offense after the enforcement of this Act.
ADDENDUM<Act No. 9920, Jan. 1, 2010>
This Act shall enter into force on the date of its promulgation.