Candidate for National Tax Service Commissioner Lim Gwang-hyeon... Strict Measures Against Tax Evasion, 'AI System' to Launch at Year-End

[Financial News]  Candidate for National Tax Service Commissioner Lim Gwang-hyeon announced that an 'AI Tax Evasion Tracking System' will be launched at the end of this year to predict tax evaders by learning through artificial intelligence (AI). He also emphasized strict measures against tax evasion using private equity funds. Regarding the plan to convert the inheritance tax system to an acquisition tax, he said it should be approached with caution. The introduction of the income tax indexation system was presented as a long-term task.
Candidate Lim revealed this policy direction in a written response to the personnel hearing submitted to the National Assembly's Planning and Finance Committee on the 14th.
Candidate Lim disclosed his plan to enhance the efficiency of national tax administration by launching the 'AI Tax Evasion Tracking System' at the end of this year. The AI Tax Evasion Tracking System is a system that predicts tax evaders by learning investigation cases through AI.
Candidate Lim stated, "Introducing AI into national tax administration is not just about improving work efficiency, but a core change that greatly enhances the accuracy of tax source management and fairness in taxation," adding, "As AI technology becomes more sophisticated, the ability to detect tax sources will be strengthened, increasing the stability of tax revenue, and we will actively pursue AI-based tax source management to achieve tax justice and stable resource procurement."
He expressed his position to actively respond to tax evasion using private equity funds. Candidate Lim emphasized, "We will cooperate more closely with related institutions such as the Fair Trade Commission and the Financial Supervisory Service to strengthen the collection of related information and continuously analyze related tax data such as the issuance of convertible bonds by collective investment securities. If tax evasion is confirmed, we will respond strictly according to the law and principles, including conducting tax audits."
Regarding intelligent and malicious tax evasion, he said, "It should be rigorously verified using means such as irregular investigations and enforcement fines."
He also presented his stance on policy issues. Candidate Lim first stated, "(In principle) the Financial Investment Income Tax (FIT) should be introduced." Candidate Lim prefaced, "Since the FIT was abolished by bipartisan agreement last year, I think it is premature to discuss its introduction immediately." However, he added, "From the perspective that there is tax where there is income, there is a need for the Financial Investment Income Tax to enhance tax equity and rationalize the taxation of financial investment income, such as offsetting gains and losses and carryover deductions. Therefore, it is necessary to consider the conditions of the capital market and public consensus in the medium to long term."
Regarding the conversion of the inheritance tax system to an acquisition tax, he stated, "There are concerns about avoiding inheritance tax through disguised division, a decrease in tax revenue by about 2 trillion won, and increased administrative costs due to increased work for the National Tax Service, so it is necessary to carefully review whether to introduce it."
Regarding the introduction of the income tax indexation system, he explained, "While there are positive aspects in solving the problem of excessive tax burden due to price fluctuations and preventing an increase in the actual tax burden, there are also concerns about a decrease in tax revenue. Therefore, it is necessary to conduct a medium- to long-term review in conjunction with the reorganization of various deductions and exemptions."
He expressed the opinion that the taxation of virtual assets will be implemented as scheduled in 2027. Candidate Lim replied, "The National Tax Service will actively support virtual asset businesses to properly submit transaction data on schedule to ensure that taxation is implemented without a hitch."
Candidate Lim also clarified suspicions that the tax firm 'Choice,' established after retiring as Deputy Commissioner of the National Tax Service, grew rapidly in a short period, saying there was no 'preferential treatment for former officials.' Candidate Lim stated, "I joined the corporation following a proposal to participate in the establishment of a tax firm by existing tax accountants," adding, "The sales are the total achieved by about 20 experts, including accountants and tax accountants. There was no preferential treatment such as preferential treatment for former officials."
Meanwhile, the National Assembly hearing for Candidate Lim will be held on the 15th.


mirror@fnnews.com Kim Gyu-seong Reporter