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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, May 25 — National Tax Service Commissioner Lim Kwang-hyun warned of strict tax investigations into the personal use of corporate-owned luxury vehicles, including supercars.
In a statement posted on social media, Lim said authorities are closely reviewing the acquisition, usage, and expense treatment of high-value corporate vehicles. He noted that some individuals have purchased multimillion-dollar supercars under corporate names and used them for personal activities—such as family outings and leisure—while improperly classifying related costs as business expenses.
Such practices, he emphasized, constitute clear tax evasion rather than merely ethical concerns, as they effectively shift part of the cost burden onto taxpayers.
The warning follows previous crackdowns that led to the introduction of green license plates for corporate vehicles priced above KRW 80 million. While registrations initially declined, recent data shows a rebound, raising concerns that misuse persists.
Lim added that companies found engaging in such practices often face significantly higher tax penalties, signaling broader risks of non-compliance, and stressed the government’s commitment to strengthening tax fairness and enforcement.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
https://www.alphabiz.co.kr/news/view/1065619496144827
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.
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