Frequently Asked Questions

First check the notice for the taxes, periods, grounds, and start date of the audit. Advance notice is required in principle (Framework Act on National Taxes art. 81-7), and postponement can be requested for legitimate business reasons. Then review your filings, books, and supporting documents for the covered periods to identify likely issues. Preparation before the audit begins shapes the entire process, so consult a professional as soon as the notice arrives.

Related areas: Tax Audit Defense · Corporate & Income Tax

Yes. Taxpayers have the right to assistance from an attorney, CPA, or tax accountant during an audit, including attendance and statements of opinion (Framework Act on National Taxes art. 81-5). Counsel monitors whether questions and document requests stay within scope and ensures written records match what was actually said — critical where the audit may convert into a criminal tax investigation. Discuss attendance and preparation once a schedule is set.

Related areas: Tax Audit Defense · Tax Criminal Defense

Within 30 days of receiving the notice (Framework Act on National Taxes art. 81-15). Pre-assessment review challenges the proposed assessment before the tax bill is issued; if accepted, the matter can end without formal appeals or litigation. The window is short, so organize the issues and evidence immediately — after 30 days, only post-assessment remedies remain. Confirm the receipt date first and decide promptly with counsel.

Related areas: Tax Audit Defense · Tax Appeals

An objection asks the assessing office itself to reconsider and is optional; a Tax Tribunal appeal is decided by an independent body and (or an alternative review) is a mandatory step before court litigation (Framework Act on National Taxes arts. 55, 56). The right route depends on the nature of the issues, how ready your evidence is, and whether facts are disputed. Each step has its own deadline, so seek advice early after receiving the assessment.

Related areas: Tax Appeals · Tax Litigation

Within 90 days from the day you became aware of the assessment — usually the day the tax bill was received (Framework Act on National Taxes art. 68). If an objection was filed first, 90 days run from notice of that decision. The deadline is strictly enforced; even one day late means dismissal without a merits review. Ninety days is not long for organizing facts, gathering evidence, and drafting, so fix the receipt date and start preparing at once.

Related areas: Tax Appeals · Tax Litigation

Yes, through a correction claim. If you reported more tax than the law requires, you may claim a refund within five years of the statutory filing deadline, in principle (Framework Act on National Taxes art. 45-2). Typical grounds include calculation errors, missed exemptions or reductions, double taxation, and subsequent events such as a court ruling voiding a transaction. If the claim is denied, that denial itself must then be appealed — so build the evidence and legal grounds into the claim from the start.

Related areas: Tax Appeals · Capital Gains & Real Estate Tax

In some cases, yes. Penalties are not imposed where there is justifiable cause for the failure (Framework Act on National Taxes art. 48), and filing an amended or late return within certain periods earns graduated reductions. Courts read "justifiable cause" narrowly, so concrete proof — such as erroneous official guidance or unavoidable circumstances — is key. Penalties sometimes exceed the principal tax, so review each penalty item separately for what to contest and what to seek relief on.

Related areas: Tax Appeals · Corporate & Income Tax · Value-Added Tax

It depends on whether you filed by the statutory deadline. An amended return corrects an underreported filing made on time; a late return is for when no filing was made at all (Framework Act on National Taxes arts. 45, 45-3). In both cases, earlier filing means larger penalty reductions, and relief may be limited once an audit notice arrives — timing matters. Review your filing history to determine the most favorable sequence before acting.

Related areas: Value-Added Tax · Capital Gains & Real Estate Tax

Late-payment penalties accrue continuously, and after a demand notice, enforced collection follows — seizure of bank accounts, wages, and real estate (see the National Tax Collection Act). Large arrears can bring exit bans, public disclosure of delinquents, and credit reporting. Relief exists: payment deferral or installments where lump-sum payment is genuinely difficult, and unlawful or excessive seizures can themselves be challenged. Options narrow the longer arrears continue, so organize the amounts and assets and plan a response early.

Related areas: Tax Litigation · Local Tax

File and pay within six months from the end of the month in which death occurred (Inheritance Tax and Gift Tax Act art. 67). Prepare an asset inventory (real estate, deposits, shares, insurance), records of pre-death asset disposals and withdrawals, proof of debts and funeral expenses, and family relation documents. Pre-death disposals and withdrawals are often added back to the estate unless their use is substantiated. If the estate is complex, valuation and division must also fit within six months — plan the full timeline early.

Related areas: Inheritance & Gift Tax

Yes. Transfers into a family member’s account are often presumed to be gifts, and it falls on the taxpayer to show otherwise — living expenses, a loan, or entrusted funds management (see Inheritance Tax and Gift Tax Act art. 45). A loan claim needs more than a written note: actual interest payments and repayment flows must back it up. Substantiating after an audit or source-of-funds inquiry begins is much harder, so document large transfers in advance, and if questions have already been raised, organize your evidence with counsel first.

Related areas: Tax Audit Defense · Inheritance & Gift Tax

Tax evasion is a criminal offense. Evading tax through fraud or other improper means carries imprisonment or fines (Punishment of Tax Offenses Act art. 3), and where annual evaded tax exceeds statutory thresholds (KRW 0.5 or 1 billion), the Aggravated Punishment Act applies with substantially heavier penalties. The typical path runs from a tax audit converting into a criminal tax investigation, then referral and prosecution. The core disputes are whether "improper means" existed and how the evaded amount is computed — manage statements and document production with counsel from the earliest signs of conversion.

Related areas: Tax Audit Defense · Tax Criminal Defense

The roles differ. Tax accountants excel at filings, bookkeeping, and day-to-day audit handling; attorneys focus on contesting the legality of assessments and managing statements and evidence. Court litigation can only be conducted by an attorney (see Attorney-at-Law Act art. 3), and where a criminal tax investigation or referral is possible, a single statement can carry criminal consequences. In practice, your accountant and attorney work together sharing records and issues — start by confirming what combination your stage of the case requires.

Related areas: Tax Litigation · Tax Criminal Defense

Fees depend on the stage (pre-assessment review, Tax Tribunal appeal, court litigation), the complexity of the issues, and the amount in dispute. At the first consultation we assess the assessment and its issues, then provide a written, stage-by-stage scope and fee; any change in scope is discussed in advance. The structure of fees, including any performance-linked component, is explained precisely in consultation in light of the case type and applicable rules. Procedural costs also differ by stage, so plan fees alongside the overall timeline.

Related areas: Tax Appeals · Tax Litigation