High Earners Hide Taxable Income

      September 07, 2015 10:55

      Lawyers, doctors and other professionals hide on average W330,000 out of every W1 million in income they earn in order to evade taxes (US$1=W1,092).

      According to data by the National Tax Service, a tax probe last year of 270 high-income professionals, including doctors, lawyers, tax accountants and CPAs found that 32.9 percent of their total incomes had not been taxed.

      That means for every W1 million they earn, high-income professionals reported only around W670,000.

      The probed professionals failed to report W261.6 billion in taxable income, or W970 million per individual.

      The NTS charged them W460 million in back taxes each or a total of W123.2 billion.

      The amount of taxable income earned by high earners that went under the radar has been rising steadily from 28.1 percent in 2010.

      An NTS official said, "The 270 individuals subject to the tax probe were high-income professionals, who data suggest are the biggest offenders when it comes to tax evasion. But this does not mean all high-income professionals evade taxes."

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