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FRAMEWORK ACT ON LOCAL TAXES

Wholly Amended by Act No. 14474, Dec. 27, 2016

Amended by Act No. 14524, Jan. 4, 2017

Act No. 14839, Jul. 26, 2017

Act No. 15291, Dec. 26, 2017

CHAPTER I GENERAL PROVISIONS
SECTION 1 Common Provisions
 Article 1 (Purpose)
The purpose of this Act is to clarify the legal relationship relating to local taxes, to pursue fair taxation, and to facilitate the fulfillment of tax obligations by the residents of local governments by prescribing fundamental and common matters concerning local taxes, matters concerning the rights and duties of taxpayers and relief for breached rights, and other relevant matters.
 Article 2 (Definitions)
(1) The terms used in this Act shall be defined as follows: <Amended by Act No. 14839, Jul. 26, 2017>
1. The term "local governments" means the Special Metropolitan City, Metropolitan Cities, the Special Self-Governing City, Dos, the Special Self-Governing Province, Sis, Guns and Gus (referring to autonomous Gus; hereinafter the same shall apply);
2. The term "heads of local governments" means the Special Metropolitan City Mayor, Metropolitan City Mayors, the Special Self-Governing City Mayor, Do Governors, the Special Self-Governing Province Governor, the heads of Sis, heads of Guns and heads of Gus (referring to the heads of autonomous Gus; hereinafter the same shall apply);
3. The term "local taxes" means Special Metropolitan City taxes, Metropolitan City taxes, Special Self-Governing City taxes, Do taxes, Special Self-Governing Province taxes, Si taxes, Gun taxes and Gu taxes (referring to Gu taxes of autonomous Gus; hereinafter the same shall apply);
5. The term "tax base" means the quantity, area, value, etc. of a taxable object forming the direct basis for calculating the amount of tax pursuant to the Local Tax Act;
6. The term "standard tax rate" means the tax rate normally applied by local governments when assessing local taxes, which need not be complied with in financial hardship or other extenuating circumstances;
7. The term "tax base return" means a return stating matters necessary to pay or refund a local tax, such as the tax base, tax rate, amount, etc. of a local tax;
8. The term "revised tax base return" means a return that revises the details entered in the tax base return originally filed;
9. The term "statutory deadline for return" means a deadline by which a tax base return is to be filed under this Act or local tax-related Acts;
10. The term "tax official" means the head of a local government or public official entrusted with the duties of assessing, collecting, etc. local taxes;
11. The term "person liable to pay taxes" means a person liable to pay local taxes (excluding the obligation to specially collect and pay local taxes) under the Local Tax Act;
12. The term "taxpayer" means a person liable to pay local taxes (including persons jointly and severally liable for tax payment and persons secondarily responsible for tax payment or a guarantor) and a person subject to special collection;
13. The term "person secondarily liable for tax payment" means a person liable to pay taxes on behalf of a taxpayer unable to fulfill his/her liability to pay taxes;
14. The term "guarantor" means a person who guarantees a taxpayer's obligation to pay local taxes, additional charges or expenses incurred in a disposition on default;
15. The term "tax notice" means a document prepared by a tax official, stating the provisions of an Act or municipal ordinance of the relevant local government as the basis of imposing a local tax payable by a taxpayer, name and address of taxpayer, tax base, tax rate, amount of tax, payment deadline, place for payment, measures to be implemented if a local tax is not paid by payment deadline; and method for relief where the Act or subordinate statutes are violated or a local tax is imposed erroneously, and other relevant matters;
16. The term "return and payment" means that a taxpayer files a local tax return stating the tax base and the amount of tax payable, and pays the amount of tax reported;
17. The term "imposition" means that the head of a local government requires a person liable to pay taxes to pay local taxes under this Act or local tax-related Acts;
18. The term "collection" means that the head of a local government collects money collectable by the local government from taxpayers under this Act or local tax-related Acts;
19. The term "ordinary collection" means that a tax official collects local taxes upon issuing a tax notice to the relevant taxpayers;
20. The term "special collection" means that a person in appropriate circumstances to collect local taxes, is required to collect local taxes and pay such local taxes to the head of a local government for convenience sake when local taxes are to be collected;
21. The term "person subject to special collection" means a person obligated to collect and remit local taxes by means of special collection;
22. The term "money collectible by a local government" means local taxes, additional charges and expenses incurred in a disposition on default;
23. The term "additional tax" means an amount collected, being added to the amount of tax calculated according to this Act or local tax-related Acts if a liability prescribed by this Act or a local tax-related Act is not fulfilled in order to have such liabilities faithfully performed: Provided, That additional charges shall not be included therein;
24. The term "additional charge" means an amount collected further to the amount of tax notified under this Act or local tax-related Acts if a local tax is not paid by the payment deadline and an amount collected being further added to the aforementioned amount if the aforementioned amount remains unpaid within a certain period after the payment deadline expires;
25. The term "expenses incurred in a disposition on default" means expenses (including fees where sale is conducted by an agent) incurred in the seizure, custody, transportation and sale of property under the provisions concerning dispositions on default in Chapter III of the Local Tax Collection Act;
26. The term "public charges" means those excluding national taxes, customs duties, temporary import surtaxes and local taxes, and additional charges and expenses incurred in a disposition on default relating thereto, among bonds collectable in accordance with the examples of disposition on default under the Local Tax Collection Act or the National Tax Collection Act;
27. The term "local government association" means a local government association under Article 159 (1) of the Local Autonomy Act;
28. The term "local tax information and communications network" means an information and communications network under subparagraph 10 of Article 2 of the Electronic Government Act, related to local taxes and announced by the Minister of the Interior and Safety according to standards prescribed by Ordinance of the Ministry of the Interior and Safety;
29. The term "electronic return" means filing documents relating to filing returns under this Act or local tax-related Acts, such as a tax base return, etc. through the local tax information and communications network;
30. The term "electronic payment" means paying an amount to be collected by local governments using the local tax information and communications network or electronic media connected with the local tax information and communications network and information and communications networks of local tax collection agencies pursuant to Article 136 (1), such as the Internet, telephone communications device, automatic teller machine, etc.;
31. The term "electronic service" means serving documents using a local tax information and communications network under this Act or local tax-related Acts;
32. The term "delinquent taxpayer" means a taxpayer who fails to pay a local tax by the payment deadline;
33. The term "amount in arrears" means local taxes in arrears, additional charges thereto, and expenses incurred in collecting delinquent local taxes;
34. The term "affiliated person" means a person who has any of the following relations with the relevant person. In such cases, when this Act and local tax-related Acts are applied, the relevant person shall also be deemed an affiliate of such affiliated person:
(a) Kinship prescribed by Presidential Decree, such as a blood relative or relative by marriage;
(b) Economic relationship prescribed by Presidential Decree, such as an executive or employee;
(c) Management control relationship prescribed by Presidential Decree, such as a stockholder and investor;
35. The term "taxation data" means data prepared or obtained and managed by agencies submitting taxation data specified in Article 127 in the course of performing their duties, necessary for imposing and collecting local taxes and for managing tax payment.
(2) Except as otherwise provided for in this Act or local tax-related Acts, provisions concerning Dos shall apply mutatis mutandis to the Special Metropolitan City and Metropolitan Cities; provisions concerning Dos and provisions concerning Sis and Guns to the Special Self-Governing City and the Special Self-Governing Province; and the provisions concerning Sis/Guns to Gus, respectively. In such cases, "Dos," "Do taxes," "Do Governor," or "Do public officials" shall be construed as "Special Metropolitan City, Metropolitan Cities, the Special Self-Governing City, or the Special Self-Governing Province," "Special Metropolitan City taxes, Metropolitan Cities taxes, Special Self-Governing City taxes, or Special Self-Governing Province taxes," "Special Metropolitan City Mayor, Metropolitan Cities Mayors, the Special Self-Governing City Mayor, or the Special Self-Governing Province Governor" or "Special Metropolitan City public officials, Metropolitan City public officials, Special Self-Governing City public officials, or Special Self-Governing Province public officials"; and "Sis and Guns," "Si taxes and Gun taxes," "heads of Sis and heads of Guns," or "Si public officials and Gun public officials" shall be construed as "the Special Self-Governing City, the Special Self-Governing Province or Gus," "Special Self-Governing City taxes, Special Self-Governing Province taxes, or Gu taxes," "the Special Self-Governing City Mayor, the Special Self-Governing Province Governor, or heads of Gus," or "Special Self-Governing City public officials, Special Self-Governing Province public officials, or Gu public officials," respectively.
 Article 3 (Relationship with Local Tax-Related Acts)
The provisions of this Act shall apply concerning local taxes, unless prescribed otherwise by local tax-related Acts.
SECTION 2 Authority, etc. to Impose Taxes
 Article 4 (Local Governments' Authority to Impose Taxes)
Local governments shall have the authority to impose local taxes, as prescribed in this Act or local tax-related Acts.
 Article 5 (Municipal Ordinance concerning Imposing and Collecting Local Taxes)
(1) When local governments designates items of taxation, taxable subject matter, tax bases, tax rates and other matters necessary for imposing and collecting local taxes, they shall promulgate municipal ordinances within the extent prescribed in this Act or local tax-related Acts.
(2) The heads of local governments may promulgate municipal rules prescribing procedures for implementing municipal ordinances under paragraph (1); and matters necessary for such implementation.
 Article 6 (Entrustment, Delegation, etc. of Authority of Heads of Local Governments)
(1) The heads of local governments may partially delegate their authority under this Act or local tax-related Acts to the public officials affiliated therewith, or delegate or entrust such authority to the heads of other local governments (including the heads of affiliated agencies; hereinafter in this Article the same shall apply).
(2) The head of a central administrative agency or the head of another local government entrusted or delegated with the authority of a local government pursuant to paragraph (1) may partially re-delegate the authority to a public official under his/her jurisdiction.
(3) The head of a central administrative agency or the head of a local government entrusted or delegated with the authority pursuant to paragraph (1) and a public official under his/her control to whom the authority is re-delegated pursuant to paragraph (2), shall be deemed a tax official.
 Article 7 (Items of Local Taxation)
(1) Local taxes shall consist of ordinary taxes and earmarked taxes.
(2) Items of ordinary tax shall be classified as follows:
1. Acquisition tax;
2. Registration and license tax;
3. Leisure tax;
4. Tobacco consumption tax;
5. Local consumption tax;
6. Resident tax;
7. Local income tax;
8. Property tax;
9. Automobile tax.
(3) Items of earmarked tax shall be classified as follows:
1. Local resource and facility tax;
2. Local education tax.
 Article 8 (Items of Taxation by Local Governments)
(1) Special Metropolitan City taxes and Metropolitan City taxes are as follows: Provided, That in cases of Gun areas in the Metropolitan Cities, Do taxes under paragraph (2) shall be in lieu of Metropolitan City taxes:
1. Ordinary taxes:
(a) Acquisition tax;
(b) Leisure tax;
(c) Tobacco consumption tax;
(d) Local consumption tax;
(e) Resident tax;
(f) Local income tax;
(g) Automobile tax;
2. Earmarked taxes:
(a) Local resource and facility tax;
(b) Local education tax.
(2) Do taxes are as follows:
1. Ordinary taxes:
(a) Acquisition tax;
(b) Registration and license tax;
(c) Leisure tax;
(d) Local income tax;
2. Earmarked taxes:
(a) Local resource and facility tax;
(b) Local education tax.
(3) Gu taxes are as follows:
1. Registration and license tax;
2. Property tax.
(4) Si taxes and Gun taxes (including Gun taxes of Metropolitan Cities; hereinafter the same shall apply) are as follows:
1. Tobacco consumption tax;
2. Resident tax;
3. Local income tax;
4. Property tax;
5. Automobile tax.
(5) Special Self-Governing City taxes and Special Self-Governing Province taxes are listed as follows:
1. Acquisition tax;
2. Registration and license tax;
3. Leisure Tax;
4. Tobacco consumption tax;
5. Local consumption tax;
6. Resident tax;
7. Local income tax;
8. Property tax;
9. Automobile tax;
10. Local resource and facility tax;
11. Local education tax.
 Article 9 (Joint Imposition of Property Tax in Jurisdiction of Special Metropolitan City)
(1) In cases of Gus under the jurisdiction of the Special Metropolitan City, a property tax (excluding property tax on ships and aircraft under Chapter IX of the Local Tax Act and a property tax calculated under Article 112 (1) 2 and (2) of the same Act) shall be the property tax which is Special City tax or Gu tax, notwithstanding Article 8.
(2) The amount of property tax belonging to the Special Metropolitan City and the amount of property tax belonging to Gus among the property tax which is Special Metropolitan City tax or Gu tax under paragraph (1) shall be 50 percent of the amount of property tax calculated under Article 111 (1) of the Local Tax Act, respectively. In such cases, property tax belonging to the Special Metropolitan City shall be deemed the Special Metropolitan City tax which is an ordinary tax under Article 8 (1); and property tax belonging to Gus shall be deemed Gu tax which is an ordinary tax under Article 8 (3).
(3) The property tax under Article 112 (1) 2 and (2) of the Local Tax Act shall be appropriated as the Special Metropolitan City tax, notwithstanding Article 8 (1) and (3).
 Article 10 (Granting Property Tax Belonging to Special Metropolitan City)
(1) The Special Metropolitan City Mayor shall grant the total amount of property tax belonging to the Special Metropolitan City under Article 9 (1) and (2) to Gus under his/her jurisdiction.
(2) Necessary matters, such as standards for and methods of granting property tax, etc. under paragraph (1) shall be prescribed by municipal ordinance of the Special Metropolitan City based on local tax revenue of Gus, etc: Provided, That where standards for grant are not determined, property tax shall be equally distributed to Gus.
(3) The property tax granted by the Special Metropolitan City under paragraphs (1) and (2) shall be deemed property tax revenue of the relevant Gu.
 Article 11 (Special Cases concerning Resident Tax)
In cases of Metropolitan Cities, the pro rata property portion and pro rata employee portion of resident tax under Sections 3 and 4 of Chapter VII of the Local Tax Act shall be Gu tax, notwithstanding Article 8 (1) 1 (e).
 Article 12 (Measures to be Taken in Disputes between Heads of Relevant Local Governments)
(1) Where the heads of local governments mutually disagree regarding matters to whom the authority to impose taxes pertain or over the application of this Act or local tax-related Acts and fail to reach agreement, they shall request a ruling on such matters by the competent Special Metropolitan City Mayor, Metropolitan City Mayor, or Do Governor (hereinafter referred to as "Mayor/Do Governor") in cases involving one Special Metropolitan City, Metropolitan City, or Do (hereinafter referred to as "City/Do"); and by the Minister of the Interior and Safety in cases involving an area extending over at least two Special Metropolitan City, Metropolitan Cities, Special Self-Governing City, Dos or Special Self-Governing Province (hereinafter referred to as "City/Do, etc."). <Amended by Act No. 14839, Jul. 26, 2017>
(2) When a Mayor/Do Governor or the Minister of the Interior and Safety receives and accepts a request for ruling under paragraph (1) from the heads of relevant local governments, he/she shall make a ruling within 60 days from the date he/she accepts such request and shall notify the heads of the relevant local governments of the outcome thereof without delay. <Amended by Act No. 14839, Jul. 26, 2017>
(3) The head of a Si/Gun/Gu dissatisfied with a ruling made by a Mayor or Do Governor under paragraph (2) may request the Minister of the Interior and Safety to examine it within 30 days from the date he/she is notified. <Amended by Act No. 14839, Jul. 26, 2017>
(4) When the Minister of the Interior and Safety accepts a request for examination under paragraph (3), he/she shall make a ruling thereon within 60 days from the date he/she accepts such request and notify the heads of relevant local governments of the outcome thereof without delay. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 13 (Succession to Authority to Impose Taxes in Cases of Disbandment, Creation, Secession or Annexation of Sis or Guns)
(1) Where the Special Self-Governing City, the Special Self-Governing Province, or a Si/Gun/Gu (hereinafter referred to as "Si/Gun/Gu") is disbanded, created, seceded or annexed, a right to collect money collectible (hereinafter referred to as "right to collectible money") by the Si/Gun/Gu extinguished (hereinafter referred to as "abolished Si/Gun/Gu") following such disbandment, creation, secession or annexation shall be respectively succeeded by a Si/Gun/Gu (hereinafter referred to as "succeeding Si/Gun/Gu") in which the area of the abolished Si/Gun/Gu is newly incorporated. In such cases, imposition, collection and other procedures, and reports already submitted, requests for examination and other procedures of the abolished Si/Gun/Gu shall be deemed imposition, collection and other procedures, and reports already submitted, requests for examination and other procedures of the succeeding Si/Gun/Gu, respectively.
(2) Where at least two succeeding Sis/Guns/Gus succeed to a right to money collectible by the abolished Sis/Guns/Gus under paragraph (1) and the heads of succeeding Sis/Guns/Gus mutually disagree about the money collectible by the abolished Sis/Guns/Gus they are to succeed respectively and fail to reach agreement, they shall file a request for ruling on such matters with the competent Mayor/Do Governor in cases involving one City/Do or with the Minister of the Interior and Safety in a case extending over at least two Cities/Dos. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Article 12 (2) through (4) shall apply mutatis mutandis to requests made under paragraph (2) and to rulings by a Mayor/Do Governor or the Minister of the Interior and Safety on such requests. <Amended by Act No. 14839, Jul. 26, 2017>
(4) Where succeeding Sis/Guns/Gus succeed to a right to collectible money held by abolished Sis/Guns/Gus under paragraphs (1) through (3), and impose and collect such money collectible, they shall do so in the same manner as the abolished Sis/Guns/Gus.
 Article 14 (Succession to Authority to Impose Taxes in Cases of Changes in Boundaries of Sis/Guns/Gus)
(1) Where the boundaries of Sis/Guns/Gus change, or a Si/Gun/Gu to which all or part of a newly created Si/Gun/Gu following the disbandment, creation, secession or annexation of Sis/Guns/Gus previously belonging continues to exist, a right to the following money collectible by a local government (limited to money collectible by a local government imposed for the year after the year in which a boundary changes, or Sis/Guns/Gus are disbanded, created, seceded, or annexed falls in cases of money collectible by a local government under subparagraph 2) over the district of a Si/Gun/Gu to which such district with a changed boundary belonged or a right to money collectible by a local government over the area of a Si/Gun/Gu to which all or part of a newly created Si/Gun/Gu area previously belonged (hereinafter referred to as "former Si/Gun/Gu"), shall be succeeded to by the Si/Gun/Gu to which such district or area newly belongs (hereinafter referred to as "new Si/Gun/Gu"): Provided, That if a former Si/Gun/Gu and a new Si/Gun/Gu have made a decision different from the aforementioned one by mutual agreement, such right may be succeeded based on such decision:
1. Money collectible by a local government by the method of return and payment with a payment deadline which does not expire before the day a boundary changes or Sis/Guns/Gus are disbanded, created, seceded, or annexed, which is not the revenue of the relevant Si/Gun/Gu;
2. Money collectible by a local government, other that listed in subparagraph 1 shall be the one which is not the revenue of the relevant Si/Gun/Gu before the day a boundary change or Sis/Guns/Gus are disbanded, created, seceded, or annexed.
(2) Where succession is made under the main sentence of paragraph (2), the latter part of Article 13 (1) and Article 13 (2) through (4) shall apply mutatis mutandis, and where succession is made under the proviso to paragraph (1), the latter part of Article 13 (1) and Article 13 (4) shall apply mutatis mutandis.
(3) Where money collectible by a local government is succeeded pursuant to paragraphs (1) and (2), former Sis/Guns/Gus shall accord convenience in imposing and collecting such money collectible at the request of new Sis/Guns/Gus.
 Article 15 (Succession to Authority to Impose Taxes in Cases of Change in Boundaries of Cities/Dos, etc.)
(1) Where the boundaries of Cities/Dos, etc. change, succession to a right to money collectible by a City/Do, etc. over the district with changed boundary shall be determined by mutual agreement of the relevant Cities/Dos, etc. using a method corresponding to that prescribed in Articles 13 and 14.
(2) Where mutual agreement under paragraph (1) is not reached, Article 12 shall apply mutatis mutandis; and where a right to money collectible by the City/Do, etc. over a district with changed boundary is succeeded according to mutual agreement under paragraph (1), the latter part of Article 13 (1) and Article 13 (4) shall apply mutatis mutandis.
 Article 16 (Delegation to Presidential Decree)
Besides succession to a right to impose taxes prescribed in Articles 13 through 15, matters necessary for succession to a right to impose taxes where the boundaries of Sis/Guns/Gus change, or Sis/Guns/Gus are disbanded, created, seceded or annexed and consequently the boundaries of Cities/Dos change shall be prescribed by Presidential Decree.
SECTION 3 Principles of Imposition, etc. of Local Taxes
 Article 17 (Actual Taxation)
(1) If a person in whom taxable income, gains, property, act or transaction is vested by a document holds merely a nominal title and such title actually belongs to a third party, this Act or local tax-related Acts shall apply to such person to whom such actually belongs as a taxpayer.
(2) Provisions concerning tax bases or the calculation of the amount of tax prescribed in this Act and local tax-related Acts shall apply according to the actual details, irrespective of the name or form of income, gains, property, conduct or transaction.
 Article 18 (Good Faith)
Taxpayers and tax officials shall perform their obligations and duties in good faith.
 Article 19 (Documentary Taxation)
(1) If a person liable to pay taxes keeps and records in a book pursuant to local tax-related Acts, the examination and assessment of the tax base of the relevant local taxes shall be based on such book and evidentiary material relating thereto.
(2) In examining and assessing local taxes under paragraph (1), if details entered are inaccurate or are omitted, only such part shall be assessed, based on the facts examined by a local government.
(3) If a local government examines matters inconsistent with records or omitted matters and assesses such matters pursuant to paragraph (2), the local government shall additionally state the fact it has examined and grounds for such assessment, in the assessment note.
(4) If a person liable to pay taxes or his/her representative makes a request, the head of a local government shall permit him/her to peruse the assessment note prescribed in paragraph (3) or issue a copy thereof, or to verify that the copy is the same as the original.
(5) Any request under paragraph (4) shall be made verbally: Provided, That if the head of the relevant local government deems it necessary, he/she may request a person to sign a statement when perusing the assessment note or when issuing a copy.
 Article 20 (Standards, etc. for Interpretation)
(1) In interpreting and applying this Act or local tax-related Acts, no property right of taxpayers shall be unreasonably infringed in light of equity in taxation and the purpose of the relevant provisions.
(2) Any income, gains, property, act or transaction for which local tax duties accrue (in cases of local taxes for which a person subject to collection is separately designated under this Act or local tax-related Acts, referring to duties to collect and pay them; hereinafter the same shall apply) shall not be subject to retroactive taxation by any new local tax-related Acts enacted after such liabilities accrue.
(3) Once any interpretation of this Act or any local tax-related Act or practice in tax administration, is generally accepted by taxpayers, any conduct or computation according to such interpretation or practices shall be deemed reasonable, and no tax shall be retroactively imposed in accordance with any new interpretation or practice.
 Article 21 (Limitation of Tax Officials' Discretion)
Tax officials shall observe limitations placed pursuant to the purpose of this Act or local tax-related Acts.
 Article 22 (Acknowledgement of Business Accounting)
When a tax official examines and assesses tax bases and amounts of local taxes, he/she shall acknowledge the business accounting standards and practices the relevant person liable to pay taxes continues to apply ifgenerally recognized as fair and reasonable: Provided, That in cases otherwise provided for in local tax-related Acts, such provisions shall govern.
SECTION 4 Periods and Deadlines
 Article 23 (Calculation of Periods)
Except as otherwise expressly provided for in this Act or local tax-related Acts and municipal ordinances on local taxes, the Civil Act shall govern the calculation of a period prescribed in this Act or local tax-related Acts and municipal ordinances on local taxes.
 Article 24 (Special Cases concerning Deadlines)
(1) If a deadline for filing a return, application, or claim, submission of other documents, notification, payment or collection under this Act or local tax-related Acts falls on a statutory holiday, Saturday or Workers' Day under the Designation of Workers' Day Act, the deadline shall fall on the day following such statutory holiday, Saturday or Workers' Day.
(2) Where it is impractical to file an electronic return or make an electronic payment on the deadline for filing a tax return or for payment prescribed by this Act or local tax-related Acts because the local tax information and communications network malfunctions due to a failure prescribed by Presidential Decree, the deadline shall fall on the day immediately following the day it becomes possible to file a return or make payment after recovery from such failure.
 Article 25 (Tax Returns Filed by Mail and Electronic Filing of Returns)
(1) Where a tax base return, revised tax base return, written request for correction stating matters necessary to submit a request for correction under Article 50 or documents relating thereto are filed by mail, such return or request shall be deemed filed on the day (recognized to be the day which falls on the day of dispatch on the basis of the number of days required for ordinary mail delivery if a postmark is not stamped or is illegible) a postmark under statutes related to postal services is stamped.
(2) Where a return, etc. under paragraph (1) is filed via the local tax information and communications network, such return, etc. shall be deemed filed when saved in the local tax information and communications network.
(3) Detailed matters concerning the procedures, etc. for electronically filing returns on tax base and amount, etc. of local taxes shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 26 (Extending Deadlines due to Natural Disasters, etc.)
(1) Where the head of a local government deems it impracticable for a taxpayer to file a return, application or request, to submit documents, or make notification or payment prescribed in this Act or local tax-related Acts by the specified deadline due to a natural disaster, accidents, fire or other grounds prescribed by Presidential Decree, he/she may extend the deadline, either ex officio or upon request of the taxpayer, as prescribed by Presidential Decree.
(2) Where a deadline is extended pursuant to paragraph (1), the head of a local government may request a taxpayer to provide security equivalent to an amount payable: Provided, That this shall not apply where a request to provide security is deemed impractical due to death, illness or other grounds prescribed by Presidential Decree.
(3) Where a taxpayer applies for an extension of deadline pursuant to paragraph (1) ten days before a deadline prescribed in this Act or other local tax-related Acts expires, but the head of the relevant local government fails to notify whether such extension is granted within ten days from the date of application, an extension of deadline shall be deemed granted on the tenth day from the date of application.
 Article 27 (Revocation of Extensions of Payment Deadlines)
(1) Where a taxpayer falls under any of the following cases after the head of the relevant local government has extended a payment deadline pursuant to Article 26, the head of the relevant local government may revoke the extension of payment deadline and immediately collect the relevant local taxes, the payment deadline of which has been extended:
1. Where a taxpayer fails to comply with a request by the head of a local government, such as provision of security, etc.;
2. Where the taxpayer falls under any subparagraph of Article 22 (1) of the Local Tax Collection Act and is thus deemed impracticable to collect the total amount of local taxes by the extended payment deadline;
3. Where it is deemed unnecessary to extend the payment deadline for grounds prescribed by Presidential Decree, such as changes in property conditions, etc.
(2) When the head of a local government has revoked an extension of payment deadline pursuant to paragraph (1), he/she shall promptly notify the taxpayer thereof.
SECTION 5 Service of Documents
 Article 28 (Service of Documents)
(1) Documents prescribed in this Act or local tax-related Acts shall be served at the address, place of residence, place of business, office (referring to the electronic mail address of an addressee subscribed to the information and communications network notified by the Minister of the Interior and Safety, or to the electronic post box (referring to one accessible using an authorized certificate under Article 2 of the Digital Signature Act; hereinafter referred to as "address or place of business") of the local tax information and communications network in cases of electronic service) of an addressee (referring to a person designated as the addressee of such documents; hereinafter the same shall apply). <Amended by Act No. 14839, Jul. 26, 2017>
(2) When documents are to be served on persons jointly and severally responsible for tax payment, the representative thereof shall become the addressee; and if no representative is designated, a person from whom the collection of local taxes is appropriate among the persons jointly and severally liable for tax payment, shall become the addressee: Provided, That documents concerning notification of tax payment and dunning shall be respectively served on all persons jointly and severally liable for the tax payment.
(3) Where inheritance begins and an administrator of inherited property is appointed, documents shall be served at the address or place of business of such administrator.
(4) Where a tax manager referred to in Article 139 is appointed, documents concerning notification and dunning shall be served at the address or place of business of such tax manager.
 Article 29 (Reporting on Place at which Documents are to be Served)
Where a person to be served with documents has reported either the address or place of business as the place at which he/she will be served with documents to a local government pursuant to Article 28, as prescribed by Presidential Decree, documents shall be served at the place so reported. The same shall apply if such place is changed.
 Article 30 (Methods of Service)
(1) Documents under Article 28 shall be served by methods of delivery, mail or electronic service, which comply with the procedures prescribed by municipal ordinance of the relevant local government.
(2) Service of documents by delivery under paragraph (1) shall be made by delivering documents to a person to be served therewith at the place of service: Provided, That if a person to be served with documents does not refuse, such documents may be delivered at another place.
(3) In cases falling under paragraph (2), if a person to be served with documents does not appear at the place of service, such documents may be served upon his/her employee, worker or cohabitant; if a person to be served with documents, or his/her employee, worker or cohabitant refuses to accept service thereof without good cause, such documents may be placed on or at such place of service.
(4) With respect to service of documents under paragraphs (1) through (3), if a person to be served with documents relocates his/her place of residence or business, documents shall be served at the changed place of residence or business after verifying his/her resident registration card, etc.
(5) When a document is delivered, the recipient shall sign or seal a delivery slip. In such cases, if the recipient refuses to sign or seal the delivery slip, such fact shall be further written on the delivery slip.
(6) When documents are served by regular mail, the head of a local government shall prepare and keep a record to verify the following matters:
1. Title of documents;
2. Name or title of the person to be served;
3. Place at which documents are served;
4. Date sent;
5. Main contents of documents.
(7) Electronic service under paragraph (1) shall be effected only if a person to be served with documents files an application, as prescribed by Presidential Decree.
(8) Notwithstanding paragraph (7), documents may be served either by delivery or mail pursuant to paragraph (1) if a failure of the local tax information and communications network makes electronic service impossible or if any ground prescribed by Presidential Decree exists.
(9) Detailed scope of documents to be served electronically under paragraph (7) and matters necessary for the methods of service, etc. shall be prescribed by Presidential Decree.
 Article 31 (Extensions of Payment Deadlines due to Delayed Service)
(1) Even if a tax notice, payment notice, dunning or letter of demand has been served with a fixed deadline, the deadline for payment of money collectible by a local government shall be the day 14 days elapse from the day the relevant document arrives, in any of the following cases:
1. Where the relevant document arrives after the payment deadline expires;
2. Where the payment deadline is within seven days from the date the relevant document arrives.
(2) Notwithstanding paragraph (1), in cases of a notification made pursuant to Article 22 (2) of the Local Tax Collection Act, the following days shall be the payment deadline:
1. Where a notice arrives after the payment deadline: The date the notice arrives;
2. Where a notice arrives before the payment deadline: The date of the payment deadline.
 Article 32 (Effectuation of Service)
Documents served under Article 28 shall take effect when they reach a person to be served with such documents: Provided, That in cases of electronic service, documents shall be deemed to have reached a person to be served therewith when such documents are saved at the electronic mail address designated by the person or the electronic post box of the local tax information and communications network.
 Article 33 (Service by Public Notice)
(1) When a person to be served with documents falls under any of the following cases, service of documents under Article 28 shall be deemed made 14 days after the main contents of the documents are publicly announced:
1. Where the person has an overseas address or place of business and service of documents is impractical;
2. Where an address or place of business is unconfirmed;
3. Other cases prescribed by Presidential Decree, including cases where documents served by a method prescribed in Article 30 (1) have been returned because it is verified that the person to be served with documents (including persons prescribed in Article 30 (3)) does not exist, etc.
(2) Public announcement under paragraph (1) shall be made by posting on the local tax information and communications network, an information and communications network or bulletin board of a local government; or by publishing in the Official Gazette, official report or a daily newspaper. In such cases, if service by public announcement is to be made by means of the local tax information and communications network or an information and communications network of a local government, it shall be made together other methods of public announcement.
(3) Where a tax notice, payment notice, dunning or letter of demand under paragraph (1) is served by means of public announcement, Article 31 shall apply mutatis mutandis to the relevant deadline.
CHAPTER II TAX LIABILITIES
SECTION 1 Accrual and Extinguishment of Tax Liabilities
 Article 34 (Timing when Tax Liability Arises)
(1) A liability to pay the following local taxes shall accrue at the following times:
1. Acquisition tax: When an item subject to tax is acquired;
2. Registration and license tax:
(a) Registration and license tax on registration: When a property right or other right is registered or recorded;
(b) Registration and license tax on license: When a license is obtained or the first day of the month of the payment period;
3. Leisure tax: When a ticket on which a purchaser indicates the possible winner, a horse racing ticket, etc. is sold;
4. Tobacco consumption tax: When tobacco is removed from a factory or bonded area, or brought into Korea;
5. Local consumption tax: When a liability to pay value-added tax accrues, as prescribed in the Framework Act on National Taxes;
6. Resident tax:
(a) Per capita portion and pro rata property portion: Base date of taxation;
(b) Pro rata employee portion: When remuneration is paid to employees;
7. Local income tax: When a liability to pay income tax or corporate tax on income forming the tax base thereof accrues;
8. Property tax: Base date of taxation;
9. Motor vehicle tax:
(a) Motor vehicle tax on motor vehicle ownership: The first day of the month of the payment period;
(b) Motor vehicle tax on motor vehicle driving: When a liability to pay transportation, energy and environment tax that is the tax base thereof accrues;
10. Local resource and facility tax:
(a) Water used for electricity generation: When water is used in hydroelectric power generation (excluding pumped-storage hydroelectric power generation);
(b) Groundwater: When groundwater is extracted;
(c) Underground resources: When underground resources are mined;
(d) Containers: When a container is brought into or removed from a port to use a wharf on which containers are handled;
(e) Atomic power generation: When electricity is generated in an atomic power plant;
(f) Thermal power generation: When electricity is generated in a thermal power plant;
(g) Specific real estate: Base date of taxation;
11. Local education tax: When a tax liability resulting from items of taxation forming the tax base thereof accrues;
12. Additional tax: When a tax liability resulting from a local tax to which an additional tax is to be added accrues.
(2) Notwithstanding paragraph (1), a liability to pay the following local taxes shall accrue at the following times:
1. Local income taxes to be collected specially: When income tax or corporate tax on income forming the tax base thereof is withheld;
2. Local taxes to be collected occasionally: When reasons to collect occasionally occur;
3. A portion of resident tax borne by an employee on a bonus disposed of pursuant to Article 67 of the Corporate Tax Act:
(a) Where the corporate tax base is determined or corrected: Date the employee receives a notice of change in amount of income under Article 131 (2) 1 of the Income Tax Act;
(b) Where a corporation files a corporate tax base: Date of filing the corporate tax base return or filing the revised corporate tax base return.
(3) Terms not defined in this Act among the terms used in this Article and Chapter VII shall be as defined in the Local Tax Act.
 Article 35 (Determination of Tax Liabilities)
(1) The amount of local tax shall be conclusively determined at the time classified as follows:
1. Local taxes, the tax base and amount of which are reported and paid by a person liable to pay taxes to a local government: When reported;
2. Where a local government determines the tax base and amount of local taxes under subparagraph 1: When determined;
3. Local taxes, other than that referred to in subparagraph 1: When the relevant local governments determine the tax base and amount of relevant local taxes.
(2) Notwithstanding paragraph (1), the amount of local income tax to be collected specially shall be determined when tax liabilities accrue without applying special procedures.
 Article 36 (Effect of Correction, etc.)
(1) No correction increasing the amount of tax originally determined under any local tax-related Act shall affect the relationship between rights and responsibilities under this Act or local tax-related Acts, concerning such amount of tax originally determined.
(2) No correction decreasing the amount of tax originally determined under any local tax-related Act shall affect the relationship between rights and responsibilities under this Act or local tax-related Acts, concerning the amount of tax, other than an amount reduced as a result of such correction.
 Article 37 (Extinguishment of Tax Liabilities)
A liability to pay money collectible by a local government shall be extinguished in any of the following cases:
1. When payment, appropriation or imposition is revoked;
2. When local tax is not imposed within a period during which such local tax is imposable pursuant to Article 38 and such period expires;
3. When the extinctive prescription of a right to collect money collectible by a local government is completed pursuant to Article 39.
 Article 38 (Periods of Exclusion from Imposition)
(1) No local tax is imposable unless it is imposed from the date it becomes imposable, as prescribed by Presidential Decree, to the day the following periods expire: Provided, That where mutual agreement procedures are underway in accordance with a treaty concluded to prevent double taxation (hereinafter referred to as "tax treaty"), Article 25 of the Adjustment of International Taxes Act shall apply:
1. Where a taxpayer evades local tax, or is granted a tax refund or deduction by fraud or other misconduct: Ten years;
2. Where a taxpayer fails to file a tax base return by the statutory deadline for filing a tax return: Seven years: Provided, That the period shall be ten years if a taxpayer fails to file a tax base return by the statutory deadline for filing a tax return for the following acquisition:
(a) In cases of acquisition by inheritance or donation;
(b) Where a person holding actual rights substantially acquires real estate pursuant to a title trust agreement under subparagraph 1 of Article 2 of the Act on the Registration of Real Estate under Actual Titleholder’s Name;
(c) Where a person holding actual rights in stocks or shares becomes an oligopolistic stockholder under subparagraph 2 of Article 46 and thereby is deemed to have acquired real estate, etc. of a corporation pursuant to Article 7 (5) of the Local Tax Act, even though the relevant stocks or shares of the relevant corporation were acquired in another person's name;
3. In other cases: Five years.
(2) Notwithstanding paragraph (1), a decision to correct or other necessary disposition may be made according to the relevant decision, ruling or mutual agreement or upon a request for correction before one year passes from the day a decision or ruling under subparagraph 1 becomes final or mutual agreement under subparagraph 2 is reached; or until two months pass from the day a request for correction pursuant to subparagraph 3 is filed:
1. Where a determination or ruling is made in connection with an objection, a request for examination or adjudication under Chapter VII, a request for examination under the Board of Audit and Inspection Act, or litigation under the Administrative Litigation Act (hereinafter referred to as "administrative litigation");
2. Where measures assessing taxation in breach of a tax treaty were taken, and an application for mutual agreement is filed pursuant to the provisions of the tax treaty within three years (where different provisions are prescribed by the tax treaty, such provisions shall prevail) after the day the existence of such measures is known and mutual agreement thereon is reached;
3. When a request for correction provided for in Article 50 (2) is filed.
(3) Notwithstanding paragraph (1), where the fact that title has been lent is verified at a determination or ruling under paragraph (2) 1, a disposition to impose to the lender of title may be revoked, and a determination to correct or other necessary dispositions may be issued to a person who has actually operated the business, within one year from the day such decision or ruling becomes final.
(4) A day the local tax referred to in the subparagraphs of paragraph (1) is imposable shall be prescribed by Presidential Decree.
(5) "Fraud or other misconduct" under paragraph (1) 1 means any active conduct that makes the imposition and collection of local taxes impracticable or substantially difficult (hereinafter in Articles 53, 54 and 102, the same shall apple), which falls under any of the following:
1. Making false entries in books of account, such as having a double accounting system;
2. Preparing or obtaining false evidence or false documents;
3. Destructing books of account or records;
4. Concealing property, or fabricating or concealing earnings, profits, conduct or transactions;
5. Intentionally failing to prepare or keep books of account;
6. Other acts committed in a deceptive manner.
 Article 39 (Extinctive Prescription of Right to Collect Local Taxes)
(1) A local government's right to collect money collectible by the said local government (hereinafter in this Section referred to as "right to collect local taxes") shall be extinguished by prescription, if it has not been exercised for five years from the time it is exercisable. In such cases, the time to exercise such right shall be prescribed by Presidential Decree.
(2) Except as otherwise expressly provided for in this Act or local tax-related Acts, the provisions of the Civil Act shall apply to the extinctive prescription of a right to collect local taxes.
 Article 40 (Interruption and Suspension of Prescription)
(1) The prescription of a right to collect local taxes shall be interrupted in the following cases:
1. Notice of tax payment;
2. Dunning or notice to urge payment;
3. Request for issuance;
4. Seizure.
(2) Prescription interrupted under paragraph (1) shall begin to run anew when the following period expires:
1. Notified period for payment;
2. Period for payment under dunning or notice to urge payment;
3. Period under request for issuance;
4. Period until seizure is cancelled.
(3) Extinctive prescription under Article 39 shall not run during the following periods:
1. Period for installment payment provided for in the Local Tax Act;
2. Period for annual installment payment provided for in the Local Tax Act;
3. Grace period for collection provided for in the Local Tax Collection Act;
4. Period for reprieve on disposition on default provided for in the Local Tax Collection Act;
5. Period during which a lawsuit filed by the head of a local government to nullify a fraudulent act under Article 39 of the Local Tax Collection Act is underway;
6. Period during which a creditor subrogation lawsuit filed by the head of a local government under Article 404 of the Civil Act is pending.
(4) The suspension of extinctive prescription due to a lawsuit for nullifying a fraudulent act or a creditor subrogation lawsuit filed under paragraph (3) 5 or 6 shall become void when the lawsuit is dismissed without prejudice, dismissed or withdrawn.
SECTION 2 Increase in Tax Liability and Supplemental Tax Liability
 Article 41 (Succession to Tax Liability due to Merger of Corporations)
If corporations merge, the corporation which survives or the corporation incorporated in the course of the merger shall be liable to pay money collectible by a local government which has been imposed upon, or is payable by, the corporation that is dissolved due to such merger.
 Article 42 (Succession to Tax Liability due to Inheritance)
(1) Where inheritance begins, an heir (including legatees defined in subparagraph 5 of Article 2 of the Inheritance Tax and Gift Tax Act; hereinafter the same shall apply) or an administrator of inherited property under Article 1053 of the Civil Act shall be liable to pay money collectible by a local government which has been imposed upon or is payable by the ancestor (hereinafter in this Article referred to as "money collectible by a local government to an ancestor") up to the value of property acquired by way of inheritance.
(2) If at least two heirs exist in cases falling under paragraph (1), each heir shall be jointly and severally liable to pay an amount calculated by dividing the money collectible by a local government to an ancestor in proportion to their shares in the inheritance provided for in Articles 1009, 1010, 1012 and 1013 of the Civil Act up to the value of inherited property. In such cases, heirs shall select a representative from among themselves who are to pay money collectible by a local government to an ancestor and file a report thereon to the head of a local government, as prescribed by Presidential Decree.
 Article 43 (Administrators of Inherited Property)
(1) If it is uncertain whether any heir exists in cases falling under Article 42 (1), a notice of tax payment or dunning and other necessary matters to be issued or notified to the heir shall be issued or notified to an administrator of inherited property.
(2) If it is uncertain whether any heir exists and no administrator of inherited property is appointed in cases falling under Article 42 (1), the head of a local government may request the court having jurisdiction over the place where inheritance began, to appoint an administrator of inherited property.
(3) In cases falling under Article 42 (1), any disposition or procedure imposed on an ancestor shall have the same effect on the heir or an administrator of inherited property.
 Article 44 (Joint and Several Tax Liabilities)
(1) Regarding money collectible by a local government in connection with co-owned property (excluding co-owned property of multi-family housing), joint business or property belonging to such joint business, the co-owners or joint business persons shall be jointly and severally liable to pay such money. <Amended by Act No. 15291, Dec. 26, 2017>
(2) If a corporation is divided or merges with another corporation after division, any of the following corporations shall be jointly and severally liable to pay money collectible by a local government imposed or for which a tax liability has accrued before the date of such division or ate of merger after division:
1. A corporation to be divided;
2. A corporation to be incorporated following division or merger after division;
3. Where part of a divided corporation merges with another corporation and the other corporation survives, the other corporation (hereinafter referred to as "mergee surviving merger after division").
(3) If a corporation is dissolved upon division or merger after division, the following corporations shall be jointly and severally liable to pay money collectible by a local government which has been imposed on or is payable by such dissolved corporation:
1. A corporation to be incorporated following division or merger after division;
2. A mergee surviving merger after division.
(4) Where a corporation establishes a new company pursuant to Article 215 of the Debtor Rehabilitation and Bankruptcy Act, the new company shall be jointly and severally liable to pay the money collectible by a local government, which has been imposed on the existing corporation or for which a tax liability has accrued to the existing corporation.
(5) Articles 413 through 416, 419, 421, 423 and 425 through 427 of the Civil Act shall apply mutatis mutandis to the joint and several tax liabilities prescribed in paragraphs (1) through (4).
 Article 45 (Secondary Tax Liabilities of Liquidators, etc.)
(1) Where a corporation is dissolved and an amount collectible by implementing procedures for disposition on default is less than the money collectible by a local government because residual assets are distributed or transferred without having paid the money collectible by the local government that was imposed on or is payable by the corporation, the liquidator or persons to whom the residual assets are distributed or transferred shall assume secondary tax liability for such shortfall.
(2) Secondary tax liability under paragraph (1) shall be limited to the amount of assets distributed or transferred to the liquidator, and to the amount of assets distributed or transferred to each person who has received the residual assets distributed or transferred to him/her.
 Article 46 (Secondary Tax Liability of Investors)
Where the property of a corporation (excluding a corporation that has listed its stocks on the securities market prescribed by Presidential Decree, being the securities market under the Financial Investment Services and Capital Markets Act) is insufficient to cover the money collectible by a local government that is to be imposed on or paid by such corporation, any of the following persons as of the base date of taxation or the date on which tax liability arises (the date the payment period commences for items of taxation for which no applicable provisions exist) shall assume secondary tax liability for such shortage: Provided, That in cases of oligopolistic stockholders under subparagraph 2, tax liability shall be limited to the amount calculated by multiplying an amount, calculated by dividing the shortage by the total number of shares issued (excluding non-voting stocks; hereinafter in this Article the same shall apply) of such corporation or the total amount of investment in such corporation, by the number of stocks (excluding non-voting stocks) or the amount of investment over which the relevant oligopolistic stockholders exercise de facto rights:
1. General partners;
2. Those whose total stocks held or total amount of investment made exceeds 50/100 of the total number of stocks issued by the relevant corporation or the total amount of investment in the relevant corporation and who exercise de facto rights to such stocks or investments (hereinafter referred to as "oligopolistic stockholders"), who are prescribed by Presidential Decree, among stockholders or one limited liability partner and his/her affiliated persons.
 Article 47 (Secondary Tax Liability of Corporations)
(1) Where the property (excluding issued stocks or investment shares of a corporation) of a general partner or oligopolistic stockholder (hereinafter in this Article referred to as "investor") of a corporation as at the date the payment period for local taxes (referring to the local tax, the payment period for which arrives later where at least two local taxes exist) expires is insufficient to cover the money collectible by a local government which is payable by such investor, such corporation shall bear secondary tax liability for such shortfall up to the price of stocks or investment shares held by such investor, only in the following cases:
1. If no one hopes to purchase the stocks or investment shares held by an investor when the head of a local government intends to sell them by public re-auction or under negotiated contract;
2. If any Act or the articles of incorporation of such corporation limits the transfer of stocks or investment shares held by an investor.
(2) The secondary tax liability of a corporation under paragraph (1) shall be limited to the amount calculated by multiplying the amount, calculated by dividing the amount calculated by subtracting total liabilities of such corporation from total assets, by the total value of the shares issued or total investment, by the amount of stocks held by such investor or the amount invested by such investor.
 Article 48 (Secondary Tax Liability of Business Transferees)
(1) If the property of a transferor is insufficient to cover the money collectible by a local government in connection with the business for which tax liability has been determined before the date of business transfer in cases of business transfer and acquisition, a transferee shall assume secondary tax liability for such shortfall up to the price of property acquired.
(2) "Transferee" in paragraph (1) means a person who has comprehensively succeeded all rights and responsibilities concerning the business for each place of business (in cases of a right to amounts receivable or responsibility for accounts payable, such right shall be deemed comprehensively succeeded even where not all of them have been succeeded) and run a type of business the same as or similar to the business operated by the transferor at the place where the transferor has run the business.
(3) The price of property acquired pursuant to paragraph (1) shall be prescribed by Presidential Decree.
CHAPTER III IMPOSITION
 Article 49 (Revised Returns)
(1) In any of the following cases, a person who has filed a tax base return by the statutory deadline for return under this Act or local tax-related Acts may file a revised tax base return until the head of a local government determines or corrects, and notifies the tax base and the amount of local taxes pursuant to local tax-related Acts:
1. Where the tax base and amount of tax stated in the tax base return is less than those to be reported under local tax-related Acts;
2. Where the amount of refundable tax stated in the tax base return exceeds the amount of tax refundable to be reported under local tax-related Acts;
3. Where omissions, etc. have occurred in the course of tax calculation by a person subject to special collection and the tax base and amount of tax are less than the tax base, amount of tax, etc. to be reported under local tax-related Acts.
(2) Where additional tax has accrued upon filing a revised return under paragraph (1), the person who has filed such revised return shall pay the amount of additional tax simultaneously with the filing of the revised return.
(3) Matters to be entered in a revised tax base return and procedures for filing returns shall be prescribed by Presidential Decree.
 Article 50 (Requests for Correction, etc.)
(1) In any of the following cases, a person who has filed a tax base return under this Act or local tax-related Acts by the statutory deadline for filing the return may request the head of a local government to determine or correct the tax base and the amount of local tax (where a determination or correction under the Local Tax Act is made, referring to the tax base, the amount of tax, etc. after such determination or revision is made) first reported or reported after correction within five years (where a determination or correction under the Local Tax Act is made, referring to a period for up to 90 days (limited to a period within five years after the statutory deadline for filing a tax return has expired) from the date he/she learns that such determination or correction is made (when he/she is notified of the determination or correction, the date he/she receives the notification)):
1. Where the tax base and amount of tax recorded in the tax base return (referring to the tax base and amount of tax after determination or correction where such determination or correction is made pursuant to the Local Tax Act) exceed those to be reported under the Local Tax Act;
2. Where the amount of tax refundable tax stated in the tax base return (referring to the amount of refundable tax after determination or correction where such determination or correction is made pursuant to the Local Tax Act) is less than the amount of refundable tax to be reported under the Local Tax Act.
(2) Where any of the following grounds arises, a person who has filed a tax base return by the statutory deadline for reporting; or who has had the tax base and amount of local taxes determined may request determination or correction within two months from the date he/she becomes aware that such grounds had occurred, regardless of the period referred to in paragraph (1):
1. Where transactions, acts, etc. forming the basis of calculation of the tax base and amount of tax in the initial return, determination or correction are confirmed different by a final judgment (including any reconciliation or other acts having the same effect as the judgment) in the lawsuit related thereto;
2. Where mutual agreement under a tax treaty is contrary to the details of the initial return, determination or correction;
3. Where grounds prescribed by Presidential Decree similar to those referred to in subparagraphs 1 and 2 arise after the statutory deadline for reporting of the relevant local taxes expires.
(3) The head of a local government who receives a request for determination or correction under paragraphs (1) and (2) shall determine or correct the tax base and amount of tax, or notify the person who makes such request, that no grounds exist to make any determination or correction, within two months from the date he/she receives such request: Provided, That where a person who makes a request receives no notice within two months, he/she may file an objection, request examination or request trial under Chapter VII; or may request examination under the Board of Audit and Inspection Act from the date following the date such two months elapse.
(4) Matters necessary for requesting determination or correction and the procedures for giving notification thereof shall be prescribed by Presidential Decree.
 Article 51 (Returns Filed after Deadline)
(1) A person who fails to file a tax base return by the relevant statutory deadline may file a tax base return after the payment period (hereinafter referred to as "overdue return") until the head of a local government determines and notifies the tax base and amount of tax (including additional taxes under this Act and the Local Tax Act; hereinafter in this Article the same shall apply) of the relevant local tax pursuant to the Local Tax Act.
(2) A person who files an overdue return pursuant to paragraph (1) and has an amount of tax payable under local tax-related Acts shall pay the amount of tax.
(3) Where a person files an overdue return pursuant to paragraph (1), the head of a local government shall determine the tax base and amount of the local tax under the Local Tax Act within three months from the date of return: Provided, That if it is impracticable to make a determination within three months from the date of return due to extenuating circumstances, such as taking long time in investigating the tax base and amount of tax, etc., he/she shall notify the person who files the return of the grounds therefor.
(4) Necessary matters concerning matters to be recorded in an overdue return, procedures for filing an overdue return, etc. shall be prescribed by Presidential Decree.
 Article 52 (Imposing Additional Taxes)
(1) The head of a local government may impose additional tax on any person who violates a duty under this Act or local tax-related Acts, in accordance with this Act or local tax-related Acts.
(2) Additional tax shall be an item of the relevant local tax in local tax-related Acts in which the relevant duty is provided.
(3) Notwithstanding paragraph (2), where a local tax is reduced or exempted, no additional tax shall be included in such local tax.
 Article 53 (Additional Taxes for Not Filing Tax Returns)
(1) Where a person liable to pay taxes fails to file a tax base return by the statutory deadline for filing a tax return, an amount equivalent to 20/100 of the amount of tax (where any amount of additional tax under this Act and local tax-related Acts, and additional dues equivalent to interest that should be added and paid exist, excluding the amount thereof; hereinafter referred to as "amount of tax to be paid") he/she is to pay based on such tax base return shall be imposed as an additional tax.
(2) Notwithstanding paragraph (1), where a person liable to pay taxes fails to file a tax base return by the statutory deadline for filing a return deceitfully or otherwise fraudulently, an amount equivalent to 40/100 of the amount of tax to be paid shall be imposed on him/her as additional tax.
(3) Matters necessary for calculating and imposing additional taxes, etc. under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
 Article 54 (Additional Taxes on Understated Returns and Overstated Tax Refunds on Tax returns)
(1) Where a person liable to pay taxes has filed a tax base return by the statutory deadline for filing a tax return but has reported less than the amount of tax to be reported for payment (hereinafter referred to as "understated return") or has filed a tax base return of a local tax but has reported the amount of tax to be refunded more than the amount to be reported (hereinafter referred to as "overstated tax refund on a tax return"), an amount equivalent to 10/100 of the sum of the tax amount understated and the tax refund overstated on tax returns (hereinafter referred to as "amount paid for the understated tax on a tax return, etc.") shall be imposed as additional tax.
(2) Notwithstanding paragraph (1), where a person liable to pay taxes has deceptively or otherwise tax unlawfully understated on a tax return or overstated tax refund on a tax return, the sum of the following amounts shall be imposed as an additional tax:
1. The equivalent to 40/100 of the amount paid for the understated tax on a tax return, etc. deceitfully or otherwise fraudulently (hereinafter referred to as "amount paid for the unlawfully understated amount of tax on a tax return, etc.");
2. An amount equivalent to 10/100 of the amount remaining after deducting the amount paid for unlawfully understated tax on a tax return, etc. from the amount paid for the understated tax on a tax return, etc.
(3) Notwithstanding paragraphs (1) and (2), where a person liable to pay tax has understated tax on a tax return due to any of the following reasons, no additional tax shall be imposed: <Amended by Act No. 15291, Dec. 26, 2017>
1. The relevant property was not classified as inherited property due to a legal action regarding ownership pending at the time the return was filed;
2. The tax base of a local income tax on capital gains is understated on a tax return as a consequence of the reduction of the acquisition price of stocks, etc. defined in subparagraph 2 of Article 88 of the Income Tax Act by falling under a case where a profit deemed donated is changed (excluding where the tax base and amount of corporate tax are determined or corrected due to any crime) pursuant to Articles 45-3 through 45-5 of the Inheritance Tax and Gift Tax Act according to the determination or correction of tax base and amount of corporate tax under Article 66 of the Corporate Tax Act.
(4) Matters necessary for calculating the amount paid for unlawfully understated amount of tax, etc. and imposing additional taxes shall be prescribed by Presidential Decree.
 Article 55 (Additional Taxes for Unfaithful Payment and Unfaithful Refund)
(1) Where a person liable to pay taxes fails to pay a local tax by the payment deadline under a local tax-related Act or underpays tax (hereinafter referred to as "underpaid payment") or is refunded more than the amount of tax to be refunded (hereinafter referred to as "overstated refund"), an amount calculated according to the following formula shall be imposed as an additional tax. In such cases, the limits of additional tax shall be the equivalent to 75/100 of the amount of tax not paid, the amount of understated tax (referring to the amount less than the amount to be paid; hereinafter the same shall apply), or the amount of overstated tax refund (referring to the amount more than the amount of tax to be refunded; hereafter the same shall apply):
1. The amount of unpaid tax or the tax amount payable for underpaid portion × period from the date following the payment deadline to the date of voluntary payment or the date imposing additional tax is determined × interest rate prescribed by Presidential Decree based on an interest rate a financial company, etc. applies to overdue loans;
2. The amount of overstated tax refund × period from the date following the date of refund to the date of voluntary payment or the date imposing additional tax is determined × interest rate prescribed by Presidential Decree based on an interest rate a financial company, etc. applies to overdue loans.
(2) Notwithstanding paragraph (1), no additional tax under paragraph (1) shall be applied where a local income tax on capital gains is underpaid or excessively refunded due to reducing the acquisition price of stocks, etc. defined in subparagraph 2 of Article 88 of the Income Tax Act by falling under a case where a profit deemed donated is changed (excluding where the tax base and amount of corporate tax are determined or corrected due to any crime) pursuant to Articles 45-3 through 45-5 of the Inheritance Tax and Gift Tax Act according to the determination or correction of tax base and amount of corporate tax under Article 66 of the Corporate Tax Act. <Newly Inserted by Act No. 15291, Dec. 26, 2017>
 Article 56 (Additional Taxes for Insincerity, such as Special Collection and Payment)
Where a person subject to special collection fails to pay the amount of tax to be paid by the payment deadline under local tax-related Acts or makes an underpayment, the aggregate of the following amounts shall be imposed as an additional tax up to 10/100 of the amount of tax not paid or tax amount payable for underpaid portion:
1. An amount equivalent to 3/100 of the amount of unpaid tax or the tax amount payable for underpaid portion;
2. An amount calculated as follows:
The amount of unpaid tax or the tax amount payable for underpaid portion × period from the date following the payment deadline to the date of voluntary payment or the date imposing additional tax is determined × interest rate prescribed by Presidential Decree based on an interest rate a financial company, etc. applies to overdue loans.
 Article 57 (Reduction, Exemption, etc. of Additional Taxes)
(1) Where the head of a local government imposes additional tax pursuant to this Act or local tax-related Acts and the grounds for such imposition fall under the grounds for extending a deadline under Article 26 (1) or a taxpayer has good cause for his/her failure to fulfill the relevant liability, the head of the local government shall not impose such additional tax.
(2) The head of a local government shall deduct the following amounts from the relevant amount of additional tax to be imposed under this Act or local tax-related Acts: <Amended by Act No. 15291, Dec. 26, 2017>
1. Where a revised return is filed pursuant to Article 49 within two years after the statutory deadline for filing the return expires (only applicable to additional taxes under Article 54 and excluding where a revised tax base return is filed with prior knowledge that the initial tax base and amount of tax are to be corrected by the head of a local government), the following amounts:
(a) Where a revised return is filed within six months after the statutory deadline for filing the return expires: The equivalent to 50/100 of the relevant amount of additional tax;
(b) Where a revised return is filed after the statutory deadline for filing the return expires: The equivalent to 20/100 of the relevant amount of additional tax;
(c) Where a revised return is filed between one year and two year after the statutory deadline for filing the return expires: The equivalent to 10/100 of the relevant amount of additional tax;
2. Where a return is filed after deadline within six months after the statutory deadline for filing the return expires under Article 51 (only applicable to additional taxes under Article 53 and excluding where a revised tax base return is filed with prior knowledge that the initial tax base and amount of tax are to be corrected by the head of a local government), the following amounts:
(a) Where a return is filed after deadline within one months after the statutory deadline for filing the return expires: The equivalent to 50/100 of the relevant amount of additional tax;
(b) Where a revised return is filed between one month and six months after the statutory deadline for filing the return expires: The equivalent to 20/100 of the relevant amount of additional tax;
3. Where notice of the result of a pre-tax assessment is not given within the period within which determination or notification following a pre-tax assessment is to be made under Article 88 (only applicable to additional taxes assessed under Article 55 which are imposed for the relevant period due to delayed determination or notification), the equivalent to 50/100 of the additional tax to be imposed in the relevant period;
4. In any of the following cases where a tax base return and a revised return thereof are filed after the expiration of the deadline for provisional tax return of personal local income tax on capital gains under Article 103-5 of the Local Tax Act, but by the deadline for final tax base return, the equivalent to 50/100 of the relevant amount of additional tax:
(a) Where no provisional tax return is filed but a tax base return is filed by the deadline for final tax base return (applicable only to additional taxes for not filing a tax return under Article 53, but excluding where a tax base return is filed with prior knowledge that the initial tax base and amount of tax are to be corrected by the head of a local government);
(b) If a revised tax base return is filed by the deadline for filing a final return where a provisional return was filed but the amount of which is less than the amount of tax to be paid or the amount of tax to be refunded is reported exceeding the amount to be reported (applicable only to additional taxes on understated tax on tax returns and additional taxes on excessive tax refund on tax returns under Article 54, but excluding where a tax base return is filed with prior knowledge that the initial tax base and amount of tax are to be corrected by the head of a local government).
(3) Any person who intends to be granted an additional tax reduction or exemption pursuant to paragraph (1) or (2) may file an application for such reduction or exemption, as prescribed by Presidential Decree.
 Article 58 (Revocation of or Change in Amount Imposed)
If the head of a local government verifies that imposing or collecting money collectible by a local government is unlawful or unjust, he/she shall immediately revoke or change such imposition or collection.
 Article 59 (Application Mutatis Mutandis of the Management of National Funds Act to Calculation of Fractions)
Article 47 of the Management of the National Funds Act shall apply mutatis mutandis to the calculation of fractions of money collectible by a local government. In such cases, "national funds" shall be construed as "money collectible by a local government."
CHAPTER IV LOCAL TAX REFUNDS AND SECURITY FOR TAX PAYMENT
SECTION 1 Local Tax Refunds and Additional Charges on Local Tax Refunds
 Article 60 (Appropriation of and Making Local Tax Refunds)
(1) If a taxpayer erroneously pays or overpays money collectible by a local government or an amount of tax is refundable to taxpayers pursuant to the Local Tax Act (where any amount of tax is to be deducted from the amount refundable under local tax-related Acts, referring to the remaining amount after deduction), the head of a local government shall immediately determine such erroneously paid or overpaid amount or an amount of tax to be refunded as a local tax refund. In such cases, any claim for a refund of money paid erroneously or in duplicate shall be made, as prescribed by Presidential Decree.
(2) The head of a local government shall appropriate an amount determined as a local tax refund for any of the following money collectible by the local government, as prescribed by Presidential Decree: Provided, That if such amount is appropriated to local taxes under subparagraph 1 (excluding cases falling under grounds for collection before the payment period under the subparagraphs of Article 22 (1) of the Local Tax Collection Act) and subparagraph 3, a taxpayer shall agrees to such appropriation:
1. Local taxes payable on a tax notice;
2. Amount in arrears;
3. Local taxes to be returned and paid under this Act or local tax-related Acts.
(3) Where the amount determined as a local tax refund is appropriated for money collectible under paragraph (2) 2, amount in arrears and local tax refunds shall be deemed extinguished as to the amount equivalent thereto retroactively to the later date between the statutory deadline for the payment of local taxes in arrears and the date prescribed in subparagraphs of Article 62 (1).
(4) Where a taxpayer has an amount of tax to be refunded pursuant to local tax-related Acts, he/she may request that the refund be applied to pay local taxes under paragraph (2) 1 and 3. In such cases, such local taxes shall be deemed paid on the date he/she requests that the refund be so applied.
(5) The balance of a local tax refund after appropriation pursuant to paragraph (2) shall be refunded to a taxpayer without delay after the local tax refund is determined.
(6) Notwithstanding paragraph (5), where the balance of a local tax refund after appropriation pursuant to paragraph (2) does not exceed 100,000 won, and is not refunded within six months after the date the tax refund is decided, such amount may be appropriated for local taxes under paragraph (2) 1 and 3, as prescribed by Presidential Decree. In such cases, consent referred to in the proviso to paragraph (2) shall be deemed given.
(7) Notwithstanding paragraphs (5) and (6), where a taxpayer who paid a local tax dies, in which case the remainder after a refund was applied pursuant to paragraph (2) does not exceed 100,000 won, and a refund is not paid within six months from the date the head of a local government decides to make a refund, he/she may pay a local tax refund to a principal successor prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 14839, Jul. 26, 2017>
(8) Notwithstanding Article 7 of the Local Finance Act, local tax refunds (including additional charges on local tax refunds under Article 62) under paragraph (5) shall be paid from the revenue for the year in which such refund is paid.
(9) When the head of a local government requests the return of an amount of already applied or paid money because a determination on local tax refunds has been cancelled, a notice, demand and disposition for failure in payment under this Act shall apply mutatis mutandis thereto.
 Article 61 (Refund of Property Paid in Kind)
(1) Where the head of a local government refunds property tax in accordance with a decision that cancels or reduces all or some property tax imposed after a person liable to pay tax has paid property tax in kind pursuant to Article 117, the head of a local government shall refund property tax in the same property paid in kind: Provided, That in cases prescribed by Presidential Decree, such as where the relevant property paid in kind has been sold or is used for other purposes, Article 60 shall apply mutatis mutandis thereto.
(2) Where the head of a local government refunds property tax pursuant to the main sentence of paragraph (1), Article 62 shall not apply thereto.
(3) Detailed matters concerning the refund of property paid in kind, such as a person or entity that bears management costs from the time the head of a local government receives property paid in kind until he/she returns property paid in kind, shall be prescribed by Presidential Decree.
 Article 62 (Additional Charges on Local Tax Refunds)
(1) Where the head of a local government appropriates or pays a local tax refund under Article 60, he/she shall add an amount (hereinafter referred to as "additional charges on local tax refunds") calculated according to the interest rate prescribed by Presidential Decree based on the period from the day immediately following the day referred to in the following until the day appropriation or determination of payment is made, the deposit interest rates of financial companies, etc. to local tax refunds: <Amended by Act No. 15291, Dec. 26, 2017>
1. Date payment is made if a local tax refund accrues due to erroneous payment, payment in duplicate, or because a return or imposition forming the basis of the payment is corrected (excluding cases falling under subparagraph 6 and 7) or canceled after payment has been made: Provided, That if a local tax has at least two payment periods or has been paid in at least two installments, it shall be the day of the last payment; however, if a local tax refund exceeds the money last paid, it shall be the day counted retrospectively in the order of the days payment was made until the sum of the money paid on such days reaches the amount of the local tax refund; and the amount paid by special collection shall be deemed paid on the expiry date of the statutory deadline for payment of the relevant tax item;
2. Date transfer of ownership is registered; date of transfer; or date of disuse if a refund accrues due to assessment of tax on a daily basis pursuant to Article 130 of the Local Tax Act when an annual amount of tax is paid in lump-sum under Article 128 (3) of the same Act;
3. Date reduction is determined if a local tax refund accrues due to the reduction of local tax lawfully paid;
4. Date an statute enters into force if a local tax refund accrues due to an amendment of a statute or municipal ordinance after a local tax was lawfully paid;
5. Where a local tax is refunded because a return for tax refunds under this Act or local tax related Acts is filed or an erroneous return is corrected (excluding cases falling under subparagraph 6), the date 30 days after the date such return was filed (statutory filing period where the date the return was filed precedes the statutory filing period);
6. Where a refund is made by correcting the amount of tax paid or the amount of tax refunded by requesting a correction under Article 50, the date such correction is requested (where the date the correction is requested is earlier than the date a local tax is paid, the date the local tax is paid);
7. Where local income tax is refunded due to any of the following grounds, the date 30 days after the date the head of a local government decides the refund of the local tax refund:
(a) Where local income tax is refunded in accordance with the data that the head of a tax office or the commissioner of a regional tax office has determined or corrected without a request for correction under Article 50;
(b) Where specially collected corporate local income tax is refunded pursuant to Article 103-62 of the Local Tax Act;
(c) Where local income tax is refunded pursuant to Article 103-64 (3) 2 of the Local Tax Act.
(2) Where a local tax refund is appropriated for local tax under Article 60 (6), the amount of additional dues on local tax refund shall be calculated based on the days that include the date tax refund is decided.
(3) Except as otherwise expressly provided for in paragraphs (1) and (2), necessary matters concerning the additional dues on local tax refund shall be prescribed by Presidential Decree.
 Article 63 (Transfer of Right to Local Tax Refunds)
Any taxpayer may transfer his/her right to a local tax refund (including additional charges on local tax refunds) to a third person, as prescribed by Presidential Decree.
 Article 64 (Extinctive Prescription of Local Taxes Refunds)
(1) Taxpayers' right to local tax refunds or additional charges on local tax refunds shall be extinguished by prescription, if they fail to exercise such right within five years from the time such right can be exercised.
(2) Except as otherwise expressly provided for in this Act or local tax-related Acts, the provisions of the Civil Act shall apply to the extinctive prescription under paragraph (1). In such cases, where an administrative proceeding, such as litigation requesting cancellation or confirmation of nullification of the imposition of a tax related to a local tax refund or additional dues on local tax refund, is brought, a request under subparagraph 1 of Article 168 of the Civil Act shall be deemed made concerning the interruption of the prescription thereof.
SECTION 2 Security for Tax Payment
 Article 65 (Kinds of Security)
Security that may be provided under this Act or local tax-related Acts (hereinafter referred to as "security for tax payment") shall be any of the following:
1. Money;
2. State bonds or local bonds;
3. Securities the head of a local government deems reliable;
4. Tax guarantee insurance policies;
5. A letter of guarantee from a guarantor that the head of a local government deems reliable;
6. Land;
7. A registered or recorded building, factory or mining foundation, vessel, aircraft or construction machinery, which are insured.
 Article 66 (Appraisal of Security)
The value of security for tax payment shall be appraised as follows:
1. Government bonds, municipal bonds, and securities: The value determined based upon the current price, as prescribed by Presidential Decree;
2. A Tax guarantee insurance policy: Amount of insurance coverage;
3. A letter of guarantee for tax payment: Amount guaranteed;
4. Land, a house, building other than a house, vessel, aircraft, and construction machinery: Statutory standard price under Article 4 (1) and (2) of the Local Tax Act;
5. A factory foundation or mining foundation: Value assessed by appraisal institutes or persons with expertise in the appraisal of property.
 Article 67 (Methods for Providing Security)
(1) Any person who intends to provide money or securities as security for tax payment shall deposit them in the depository and submit a receipt of deposit to the head of a local government: Provided, That for any registered State bonds, local bonds or corporate bonds, the details of security provided shall be registered and a certificate of registration shall be submitted.
(2) Any person who intends to provide a tax guarantee insurance policy or a letter of guarantee for tax payment as security for tax payment shall submit the insurance policy or the letter of guarantee to the head of a local government.
(3) Any person who intends to provide land, a house, building other than a house, vessel, aircraft, construction machinery, a factory foundation or mining foundation, as security for tax payment shall submit a certificate of registration, a notice of completion of registration or a certificate of record to the head of a local government who, in turn, shall commence the procedure of registration or record to establish a mortgage.
 Article 68 (Replacement and Supplementation of Security)
(1) Any person who has provided security for tax payment may replace the security with approval from the head of a local government.
(2) If the head of a local government deems that security provided is insufficient to ensure the payment of money collectible by a local government due to depreciation of property secured for tax payment, or guarantor's means to pay, or on other grounds, he/she may request the person who has provided security to provide additional security or replace a guarantor.
 Article 69 (Payment and Collection from Security)
(1) Any person who has provided money as security for tax payment may pay the money collectible by a local government with such money.
(2) If the money collectible by a local government for which security is provided is not paid by the deadline for such security, the head of a local government shall collect such money collectible by a local government from such security, as prescribed by Presidential Decree.
 Article 70 (Release of Security)
When the money collectible by a local government for which security is provided is paid, the head of a local government shall commence the procedure for releasing such security without delay.
CHAPTER V RELATIONSHIP BETWEEN LOCAL TAXES AND OTHER CLAIMS
 Article 71 (Priority Collection of Local Taxes)
(1) Money collectible by a local government shall be collected in preference to other public charges or claims: Provided, That local taxes shall not take precedence over any of the following public charges and claims:
1. Where the money collectible by a local government is collected from the amount regarding which a disposition on default is made through a disposition on default of national taxes or public charges, expenses incurred in a disposition on default of national taxes, or public charges;
2. Where the money collectible by a local government is collected from proceeds from the sale of property following the procedures for compulsory execution, public auction or bankruptcy, expenses incurred in taking such procedures;
3. Where local taxes and additional charges (excluding local taxes and additional charges imposed on property) are to be collected from proceeds from the sale of property for which the establishment of a leasehold right on deposit basis, pledge or mortgage was registered or recorded or the requirements for prevailing or a definite date on a lease/rental contract document under Article 3-2 (2) of the Housing Lease Protection Act or Article 5 (2) of the Commercial Building Lease Protection Act is proved, as prescribed by Presidential Decree, before any of the following dates (hereinafter referred to as "statutory date"), claims secured by such leasehold right on a deposit basis, pledge or mortgage, or deposit money stated in such lease/rental contract registered or for which a definite date is obtained:
(a) If the liability to pay any local tax is finalized by filing a tax base and amount of tax, the date the relevant amount of tax is reported;
(b) If a local government determines, corrects or determines occasional imposition of a tax base and amount of tax, the date a payment notice is issued for the relevant amount of tax notified;
(c) Notwithstanding the dates prescribed in items (a) and (b), if any local tax is to be collected from persons liable for special collection, the date the liability to pay such taxes becomes definite;
(d) If any local tax is collectable from any mortgaged property or any property of a person secondarily liable for tax payment, the date a payment notice is issued;
(e) If a taxpayer's property is seized under Article 33 (2) of the Local Tax Collection Act, the date such seizure is registered or recorded for the amount of tax liability is finalized in connection with such seizure, notwithstanding the dates prescribed in items (a) through (d);
(f) In cases of additional dues, the date of the payment deadline of the amount notified based on which additional dues are added;
4. Where local taxes or additional charges are collected from the proceeds from sale of a house or building in the lease/rental relationship governed by Article 8 of the Housing Lease Protection Act or Article 14 of the Commercial Building Lease Protection Act, claims to a certain amount of the deposit for lease/rental a lessee has priority over under such provisions;
5. Where local taxes or additional charges are collected from proceeds from sale of an employer's property or from an employer's property, the wages, retirement allowances and accident compensation paid in preference to local taxes and additional charges under Article 38 (2) of the Labor Standards Act or Article 12 (2) of the Act on the Guarantee of Workers' Retirement Benefits.
(2) Where the property on which the provisional registration (including provisional record; hereinafter the same shall apply) for the purposes of preserving a claim for transfer of a right based on a preengagement for payment in lieu, in which a person liable to pay taxes is responsible for registration and the nonfulfillment of obligation is a condition precedent, and the provisional registration being the object of security similar thereto is established is to be seized and where the principal registration based on such provisional registration is established after seizure, a right holder of such provisional registration cannot claim a right based on such provisional registration against a disposition on default made on such property: Provided, That this shall not apply to any property, the provisional registration of which was made before the statutory date of local taxes or additional charges (excluding local taxes and additional charges imposed on such property).
(3) If the head of a local government seizes or publicly auctions any provisionally-registered property under paragraph (2), he/she shall notify the relevant right holder of such provisional registration without delay.
(4) Where the head of a local government deems it impractical to collect money collectible by the local government from proceeds from sale of property because a taxpayer conspires with a third party to fraudulently enter into a lease/rental contract or contract to establish a leasehold right on a deposit basis, or pledge or mortgage under paragraph (1) 3, a contract to establish provisional registration under paragraph (2), or contract to establish a security for transfer under Article 75 and subsequently obtains a priority date, or files for registration, record, etc. of the relevant property, he/she may request the court to nullify such act. In such cases, if a taxpayer enters into a lease under the Housing Lease Protection Act or the Commercial Building Lease Protection Act; a contract to establish a leasehold right on a deposit basis, pledge or mortgage; a contract to establish provisional registration; or a contract to establish a security for transfer with a person prescribed by Presidential Decree among his/her affiliates within one year before the statutory deadline for local taxes, such contract shall be deemed a fraudulent contract entered into by conspiring with the counterpart.
(5) Local taxes imposed on property under paragraph (1) 3 and the proviso to paragraph (2) refer to property taxes, automobile taxes (only applicable to automobile tax on automobile ownership), local resource and facility taxes (only applicable to local resource and facility taxes on specific real estate) and local education taxes (only applicable to local education taxes added to property taxes and automobile taxes).
 Article 72 (Priority of Direct Expenses for Dispositions on Default)
Where a disposition on default was issued on a taxpayer's property due to failure to pay money collectible by a local government, expenses for such disposition shall be collected in preference to the money collectible by other local governments, national taxes and other claims, notwithstanding Article 71 (1) 3 and Article 74.
 Article 73 (Priority of Seizure)
(1) If any money is collectible by another local government or a request for grant of a national tax after a taxpayer's property has been seized following a disposition on default on the money collectible by a local government, the money collectible by the local government relating to such seizure shall be collected in preference to the money collectible by the other local government or the national tax requested for grant.
(2) If a request for grant of the money collectible by a local government is made after a taxpayer's property has been seized following a disposition on default on the money collectible by another local government or a national tax, the money collectible by the local government relating to such request for grant shall be collected after the money collectible by a local government relating to seizure or national taxes.
 Article 74 (Priority of Secured Local Taxes)
When property secured for tax payment is sold, notwithstanding Article 73, the relevant local government shall collect the money collectible by a local government in preference to the money collectible by another local government and national taxes.
 Article 75 (Liability to Pay Tax in Kind by Mortgagees)
(1) Where a taxpayer fails to pay the money collectible by a local government and has mortgaged property, the money collectible by a local government shall be collected from such mortgaged property only if the money collected from a disposition on default made on other property is insufficient to cover the money collectible by a local government: Provided, That no money collectible by a local government shall be collected from mortgaged property which became security before the statutory deadline for the money collectible by a local government.
(2) Mortgaged property under paragraph (1) refers to the property that has actually become the subject matter of security for mortgagor's obligation when a taxpayer transfers the property pursuant to a contract establishing a mortgage between interested parties.
CHAPTER VI RIGHTS OF TAXPAYERS
 Article 76 (Establishment and Delivery of Taxpayers' Charter of Rights)
(1) The head of a local government shall establish and publicly announce a taxpayers' charter of rights stating matters prescribed in Articles 78 through 87 and other matters concerning protecting taxpayers' rights.
(2) In any of the following cases, a tax official shall deliver a document stating the details of taxpayers' charter of rights under paragraph (1) to taxpayers:
1. Where he/she investigates (hereinafter referred to as "investigation of an offense") a local tax offense (hereinafter referred to as "offense") under Articles 102 through 109;
2. Where he/she conducts an investigation necessary for imposing and collecting local taxes (hereinafter referred to as "tax investigation").
 Article 77 (Protecting Rights of Taxpayers)
(1) The head of a local government shall ensure that taxpayers’ rights are protected and realized when performing his/her duties. <Amended by Act No. 15291, Dec. 26, 2017>
(2) The head of a local government shall appoint a taxpayers' advocate and require the taxpayers’ advocate to exclusively conduct affairs for protecting taxpayers’ rights and interests prescribed by Presidential Decree, such as dealing with local tax-related difficulties and complaints and consultation on tax problems. <Amended by Act No. 15291, Dec. 26, 2017>
(3) Matters necessary for operating a taxpayers' advocacy system under paragraph (2), such as the qualifications and authority of a taxpayers' advocate, shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 15291, Dec. 26, 2017>
 Article 78 (Presumption of Taxpayer Compliance)
Tax officials shall presume that taxpayers are compliant and the contents of the documents, etc. submitted thereby are accurate, unless they fall under any subparagraph of Article 82 (2) 1 through 3.
 Article 79 (Duty of Taxpayers to Cooperate)
Taxpayers shall cooperate conscientiously in tax officials' lawful questions, examinations, and orders to submit data.
 Article 80 (Prohibition of Abuse of Authority to Conduct Investigations)
(1) The head of a local government shall conduct tax investigations to the minimum extent necessary to achieve appropriate and fair taxation; and shall not abuse their authority to conduct investigations for any other purposes, etc.
(2) No head of a local government shall conduct a re-investigation into the same items of taxation or the same tax year, unless it falls under any of the following cases: <Amended by Act No. 15291, Dec. 26, 2017>
1. Where clear evidence exists to prove the evasion of local tax;
2. Where an investigation into the other party to a transaction is necessary;
3. Where mistakes relating to at least two business years exist;
4. Where an investigation is conducted following a decision of a necessary disposition issued under the proviso to Article 88 (4) 2 or the proviso to Article 96 (1) 3 (including cases applied mutatis mutandis in Article 81 of the Framework Act on National Taxes, applied mutatis mutandis pursuant to Article 100);
5. Other cases prescribed by Presidential Decree, similar to those referred to in subparagraphs 1 through 4.
(3) When commencing an investigation of an offense or tax investigation, a tax official shall produce an ID card proving his/her identity to taxpayers or relevant persons and explain the duties of a taxpayers' advocate, processing procedures, procedures for relief for breached rights, etc. <Amended by Act No. 15291, Dec. 26, 2017>
(4) No person shall engage in conduct interfering with fair tax investigations, such as instigating a tax official to violate statutes or abuse his/her position or authority.
 Article 81 (Right to Seek Assistance in Tax Investigations, etc.)
Where a taxpayer undergoes an investigation regarding an offense or a tax investigation, the taxpayer may request an attorney-at-law, certified public accountant or certified tax accountant to attend such investigation or state his/her opinions.
 Article 82 (Selection of Persons to Undergo Tax Investigations)
(1) In any of the following cases, the head of a local government may select specific taxpayers and conduct a tax investigation to periodically verify the propriety of returns (hereinafter referred to as "periodic selection"). In such cases, the head of a local government shall select such persons impartially, according to objective standards:
1. Where the head of a local government deems that the details of a taxpayer's return are suspicious as a result of analysis of compliance;
2. Where necessary to verify whether the details of returns filed by taxpayers who have not undergone a local tax-related investigation for the last four or more years are appropriate, as prescribed by Presidential Decree, in consideration of the type, scale, etc. of business;
3. Where a sample investigation is to be conducted by the random sampling.
(2) In addition to investigations following periodic selection, the head of a local government may conduct a tax investigation in any of the following cases:
1. Where a taxpayer fails to pay taxes voluntarily, such as filing a return, making payment, and recording, keeping, etc. of books on manufacturing, import, etc. of tobacco, as provided for in this Act or local tax-related Acts;
2. Where a taxpayer is reported for specific tax evasion;
3. Where hard data justifying suspicion of omission or error exists in the details of a return filed by a taxpayer;
4. Where a taxpayer requests a tax investigation.
 Article 83 (Advance Notice of Tax Investigations and Requests for Postponement)
(1) Where a tax official intends to conduct a tax investigation relating to local tax, he/she shall notify the taxpayer to be investigated (including a tax manager under Article 139, if appointed; hereinafter in this Article the same shall apply) of the items of taxation to be investigated, the period and grounds for investigation, and other matters prescribed by Presidential Decree at least 15 days prior to such investigation: Provided, That advance notice may be omitted where it is deemed impracticable to achieve the purpose of investigation anticipating risk of destruction of evidence, etc. if such advance notice is given. <Amended by Act No. 15291, Dec. 26, 2017>
(2) Where it is impractical for a taxpayer in receipt of notice under paragraph (1) to undergo an investigation due to a natural disaster or other grounds prescribed by Presidential Decree, he/she may request the head of a local government to postpone the investigation, as prescribed by Presidential Decree.
(3) The head of a local government in receipt of a request to postpone an investigation under paragraph (2) shall determine whether to accept such request and notify the taxpayer of the decision before such investigation commences.
 Article 84 (Period for Tax Investigations)
(1) The head of a local government shall determine the period for tax investigation by up to 20 days, based upon items of taxation, type and scale of business subject to investigation, level of difficulty of investigation, etc.: Provided, That where any of the following grounds arises, he/she may extend the period for tax investigation by up to 20 days from the day such grounds cease to exist: <Amended by Act No. 15291, Dec. 26, 2017>
1. Where it is evident that a taxpayer is evading an investigation, such as by concealing, delaying in submitting or refusing to submit books, documents, etc.;
2. Where an investigation into customers, on-site confirmation of customers or on-site confirmation of financial transactions is necessary;
3. Where his/her alleged evasion of local taxes is detected or a tax investigation case develops into an offense case in the course of investigation;
4. In cases falling under other grounds determined by the head of a local government, such as suspension, etc. of investigation etc. due to a natural disaster or labor dispute;
5. Where a person subject to tax investigations files an application for extending the period for investigation for explanation, etc. on suspicion of tax omission.
(2) Where it is difficult for the head of a local government to conduct a tax investigation for grounds prescribed by Presidential Decree, such as a delay in the submission of data caused by a taxpayer, the head of a local government may suspend the tax investigation. In such cases, the period for suspension shall not be included in the period for tax investigation and the extended period for tax investigation under paragraph (1).
(3) Where the head of a local government suspends a tax investigation pursuant to paragraph (2), he/she shall immediately resume the tax investigation if a ground for suspending the same ceases to exist: Provided, That where it is necessary to urgently resume the tax investigation, such as securing a tax claim, he/she may resume the tax investigation even before the reason for suspension ceases to exist.
(4) Where the head of a local government intends to extend the period for tax investigation pursuant to the proviso to paragraph (1), he/she shall notify a taxpayer (including a tax manager under Article 139, if appointed) in writing of grounds for extending the period for tax investigation and the extended period in advance, and where he/she suspends or resumes the tax investigation pursuant to paragraph (2) or (3), he/she shall notify a taxpayer of the reason therefor in writing.
(5) The head of a local government shall endeavor to shorten the period for tax investigation, and when he/she deems no further investigation is necessary after examining tax compliance, such as transparency in bookkeeping and accounting, he/she may close the tax investigation even before the period for tax investigation expires.
 Article 85 (Notification of Findings of Tax Investigations)
When a tax official completes an investigation into an offense or a tax investigation (including a written investigation), he/she shall notify the taxpayer (including a tax manager under Article 139, if appointed) of the findings of such investigation in writing as soon as possible: Provided, That such notification of findings may be omitted in cases prescribed by Presidential Decree where it is impractical to notify the findings of investigation due to taxpayer's business closure, etc.
 Article 86 (Confidentiality)
(1) No tax officials shall provide or disclose to any third person, any data submitted by a taxpayer to fulfill his/her tax liability under this Act or local tax-related Acts or the data, etc. they have obtained for the purpose of imposing or collecting local taxes in the course of performing his/her duties (hereinafter referred to as "tax information"), or use such information for other than originally intended purposes: Provided, That they may provide the tax information for taxpayers in any of the following cases insofar as it is appropriate for the intended purpose: <Amended by Act No. 14839, Jul. 26, 2017>
1. When a State agency requests tax information for imposing and collecting taxes;
2. When a State agency requests tax information for instituting tax litigation or prosecuting a tax evader;
3. When tax information is requested according to a court order for submission or a warrant issued by a judge;
4. When tax information is requested by another local government as it is necessary for imposing and collecting local taxes, tax litigation, prosecution against tax dodgers, or for asking questions or conducting examinations;
5. When tax information is requested by the Minister of the Interior and Safety to conduct affairs under subparagraphs of Article 135 (2) and Article 150 (2) hereof, and Article 11 (4) of the Local Tax Collection Act;
6. When tax information is requested by the Commissioner of the Statistics Korea for compiling national statistics;
7. When tax information is requested by an institution established to operate the social insurance under subparagraph 2 of Article 3 of the Framework Act on Social Security, to conduct its competent affairs under the relevant Act;
8. When tax information necessary for examining eligibility for benefits, assistance, etc. is requested by a State agency, a local government or a public institution under the Act on the Management of Public Institutions with the relevant party’s consent;
9. Other cases where tax information is requested according to other statues.
(2) Any person who requests tax information under paragraph (1) 1, 2, 4 (excluding where tax information is requested from the head of another local government through the local tax information and communications network pursuant to Article 135 (2)), or 6 through 9 shall make a request in writing stating the following matters to the head of the relevant local government:
1. Taxpayer's personal information;
2. Purpose of use;
3. Details of information requested.
(3) Tax officials shall refuse any request to provide tax information in violation of paragraph (1) or (2).
(4) No one who has learned tax information pursuant to the proviso to paragraph (1) (including those who have obtained tax information from the Minister of the Interior and Safety pursuant to the proviso to this paragraph) shall provide or disclose it to any third person or use it for other than originally intended purposes: Provided, That the same shall not apply where the Minister of the Interior and Safety provides tax information through the local tax information and communications network pursuant to Article 135 (2) after he/she has obtained such information pursuant to paragraph (1) 5. <Amended by Act No. 14839, Jul. 26, 2017>
(5) Any person who is not a public official among persons who learn tax information by being provided with tax information under this Article shall be deemed a public official in the application of penalty provisions under the Criminal Act or other Acts.
 Article 87 (Provision of Information Necessary to Exercise Rights of Taxpayers)
(1) If a taxpayer (including a person entrusted with tax matters by the taxpayer, such as a licensed tax accountant) requests information necessary to exercise his/her rights, a tax official shall promptly provide him/her with such information.
(2) The scope of information provided pursuant to paragraph (1) and necessary matters, such as a person eligible for acceptance of appointment, shall be prescribed by Presidential Decree.
 Article 88 (Pre-Assessment Review)
(1) A person in receipt of any of the following notices may request a review as to legality of the details of notice (hereinafter referred to as "pre-assessment review") to the head of the competent local government within 30 days from the date he/she receives such notices:
1. Written notice of findings of tax investigation;
2. Advance notice of taxation prescribed by Presidential Decree;
3. Any other notice prescribed by Presidential Decree.
(2) Paragraph (1) shall not apply to any of the following cases:
1. Where grounds for collection before the payment period under the subparagraphs of Article 22 (1) of the Local Tax Collection Act or grounds for occasional imposition under by local tax-related Acts exist;
2. Where a tax offense is investigated;
3. Where the period from the date notice of findings of tax investigation and advance notice of taxation are given to the expiration date of the exclusion period for the imposition of local taxes is not more than three months;
4. Other cases prescribed by Presidential Decree, where it is necessary to modify an authoritative interpretation, make a new interpretation, etc. concerning statutes, etc.
(3) Upon receipt of a request for a pre-assessment review, the head of a Si or Gun or a Do Governor shall make a decision under paragraph (4) after review by the local tax deliberation committee under Article 147 and notify the requester of the results thereof within 30 days from the date he/she receives such request. In such cases, the period for review may be extended only once by up to 30 days if any grounds prescribed by Presidential Decree exist.
(4) A decision on a pre-assessment review shall be made as follows: <Amended by Act No. 15291, Dec. 26, 2017>
1. Where a request is deemed groundless: Decision to decline the request;
2. Where a request is deemed reasonable: Decision to accept or partially accept a request: Provided, That if an additional investigation of matters, such as verification of factual relevance, etc., is necessary to determine the detailed scope of acceptance, a decision may be made for the head of a local government who has given notice referred to in subparagraphs of paragraph (1) to conduct a re-investigation and to give notice after amending the contents of the initial notice in accordance with the findings thereof;
3. Where the period for request expires or supplementation is not made within the period for supplementation: Decision not to conduct a review.
(5) Articles 15, 16, 20 through 22, 29, 36 (1), and 39 through 42 of the Administrative Appeals Act shall apply mutatis mutandis to the pre-tax assessment review. In such cases, "Committee" shall be deemed "local tax deliberation committee."
(6) A person in receipt of any of the notices referred to in subparagraphs of paragraph (1) may request the head of a local government who has given such notice to determine the tax base and amount of tax for all or part of the matters notified or to determine a correction thereof without requesting a pre-assessment review. In such cases, the head of a local government shall immediately make a decision or decision to cprrect as requested. <Amended by Act No. 15291, Dec. 26, 2017>
(7) Articles 92, 93, 94 (2), 95, the proviso to Article 96 (1), and Article 96 (4) and (5) shall apply mutatis mutandis to the pre-assessment review. <Amended by Act No. 15291, Dec. 26, 2017>
(8) Procedures for requesting the pre-assessment review, methods of conducting such review and other necessary matters shall be prescribed by Presidential Decree.
CHAPTER VII RAISING OBJECTIONS, REQUESTING EXAMINATION, AND REQUESTING ADJUDICATION
 Article 89 (Subject Matter of Request)
(1) Any person whose rights or interests are infringed upon because he/she has been issued an unlawful or unfair disposition under this Act or local tax-related Acts or he/she has not been issued a necessary disposition may raise an objection, or request an examination or an adjudication under this Chapter.
(2) The following dispositions are excluded from among the dispositions under paragraph (1):
1. Dispositions in response to an objection raised, request for an examination or request for an adjudication under this Chapter (including a disposition following a decision to correct a tax base and the amount of tax; or to uphold the original disposition as a result of a re-investigation of the legality of the original disposition; hereinafter in this paragraph the same shall apply): Provided, That this shall not apply where a request for examination or adjudication is filed against a disposition on a raised objection;
2. Dispositions to notify under Article 121 (1);
3. Dispositions for which an examination is requested under by the Board of Audit and Inspection Act or dispositions on such request for examination;
4. Disposition in response to a request for a pre-assessment review prescribed in Article 116;
5. Imposing administrative fines under this Act.
 Article 90 (Raising Objections)
If any person intends to raise an objection, the person shall raise an objection to a Mayor/Do Governor in cases of Special Self-Governing City taxes, Metropolitan City taxes or Do taxes (excluding regional resource and facility taxes on specific real estate among Do taxes, local education taxes added to Si taxes and Gun taxes, property taxes for the Special Metropolitan City portion among Special Metropolitan City taxes and Metropolitan City taxes, regional resource and facility taxes on specific real estate, and local education taxes added to Gu taxes (including Gun taxes and property taxes for Special Metropolitan City portion)); to the Special Self-Governing City Mayor or the Special Self-Governing Province Governor in cases of Special Self-Governing City taxes or Special Self-Governing Province taxes; or to the head of the competent Si/Gun/Gu in cases of Si/Gun/Gu taxes (including regional resource and facility taxes on specific real estate, among Do taxes, local education taxes added to Si taxes and Gun taxes, property taxes for Special Metropolitan City portion among Special Metropolitan City taxes and Metropolitan City taxes, regional resource and facility taxes on specific real estate and local education tax added to Gu tax (including Gun tax and property tax for Special Metropolitan City portion)), stating grounds for his/her claim for dissatisfaction, as prescribed by Presidential Decree, within 90 days from the date he/she became aware that the disposition in question is taken (if he/she receives a notice of disposition, the date on which such notice is received).
 Article 91 (Requests for Examination or Adjudication)
(1) If a person requests examination or adjudication after having raised an objection, he/she shall make such request within 90 days from the date he/she receives a notice of decision concerning the raised objection. In such cases, a request for adjudication shall be made to the president of Tax Tribunal against any decision made by the Special Metropolitan City Mayor, a Metropolitan City Mayor, the Special Self-Governing City Mayor, a Do Governor or the Special Self-Governing Province Governor; or a request for examination to the competent Mayor/Do Governor; or a request for adjudication to the president of Tax Tribunal shall be made against any decision made by the head of a Si/Gun/Gu.
(2) Where a person fails to receive notice of a decision on the raised objection within the decision period under Article 96, the person may request examination or adjudication from the date such decision period expires even before he/she receives such notice, notwithstanding paragraph (1).
(3) When a person requests examination or adjudication without raising an objection, the person shall request adjudication to the president of Tax Tribunal in cases of Special Metropolitan City taxes, Metropolitan City taxes, Do taxes (excluding regional resource and facility taxes on specific real estate among Do taxes, local education taxes added to Si taxes and Gun taxes, property taxes for Special Metropolitan City portion among Special Metropolitan City taxes and Metropolitan City taxes, regional resource and facility taxes on specific real estate and local education taxes added to Gu taxes (including Gun taxes and property taxes for Metropolitan City portion)); or the person shall request examination to City/Do Mayor or a request for adjudication to the president of Tax Tribunal in cases of Si/Gun/Gu taxes (if he/she receives a notice of disposition, the date such notice is received) within 90 days from the date he/she became aware that such disposition was taken (if the notice of disposition is received, the date such notification is received).
 Article 92 (Perusal of Related Documents and Right to State Opinions)
Any person who raises an objection, or makes a request for examination or adjudication, or a disposition agency (in cases of a disposition agency, limited to a request for examination or adjudication) may peruse documents related thereto, and state his/her pinions to the head of the relevant local government or the president of Tax Tribunal.
 Article 93 (Agent for Formal Objection, etc.)
(1) A person who raises an objection, or requests examination, and the disposition agency may appoint an attorney-at-law, certified tax accountant, or certified public accountant registered pursuant to Article 20-2 (1) of the Certified Tax Accountant Act as an agent.
(2) Where the amount involved in an objection or request is less than ten million won, a person who raises an objection or makes a request for examination may appoint his/her spouse, relative within the fourth degree of consanguinity or a relative of his/her spouse within the fourth degree of consanguinity as his/her agent.
(3) The authority of an agent shall be certified in writing, and where an agent is dismissed, such dismissal shall be reported in writing.
(4) An agent may perform all procedures concerning raising an objection or requesting an examination for the principal: Provided, That an agent may withdraw an objection or request for examination where authority is specially delegated thereto.
 Article 94 (Extension, etc. of Period for Request)
(1) If a person who intends to raise an objection, or requests examination or adjudication is unable to do so on the grounds referred to in Article 26 (1) (limited to grounds for extending a period concerning filing a return, application or request, submitting other documents or making notification) within the period for raising an objection, or making a request for examination or adjudication, the person may raise an objection, or make a request for examination or adjudication within 14 days from the date such grounds cease to exist. In such cases, a person who raises an objection, or requests examination or adjudication shall also submit a document stating the reason he/she could not raise an objection, or make a request for examination or adjudication, the date such grounds arose and the date such grounds became resolved, and other necessary matters.
(2) Where a written objection, or written request for examination or adjudication submitted by mail within the time limit provided for in Articles 90 and 91 (based on the date a postmark is stamped under postal service-related statutes) has arrived after the period for raising an objection or requesting an examination or adjudication, such objection or written request shall be deemed to have been legitimately raised or made on the expiration date of such period.
(3) Periods provided for in Articles 90 and 91 shall be unchangeable.
 Article 95 (Requests for Revision)
(1) If it is deemed impracticable to deliberate on any objection raised or request for examination made since forms or procedures for raising such objection or requesting for such examination are incomplete or evidence to prove grounds for dissatisfaction are insufficient, the head of a local government in receipt of an objection or a request for examination may request an applicant to supplement such incompleteness in writing by specifying a period for revision of 20 days: Provided, That if matters to be revised are insignificant, such matters may be revised ex officio.
(2) A person who has raised an objection or requested examination in receipt of a request for supplement under paragraph (1) may supplement it as necessary in writing or make such supplement by visiting the relevant local government and orally stating the matters to be revised and placing his/her signature or seal on the document in which a public official belonging to such local government has recorded the details of his/her oral statement.
(3) A period for revision under paragraph (1) shall not be included in a decision period provided for in Article 96.
 Article 96 (Decision, etc.)
(1) The head of a local government in receipt of an objection or request for examination shall make any of the following decisions based on the resolution passed by the local tax deliberative committee under Article 147; and shall serve the person who has raised such objection or made such request with a written decision stating the grounds therefor within 90 days from the date he/she has received such objection or request: Provided, That in case falling under any ground prescribed by Presidential Decree, such as an objection raised or request for examination made after the period for raising an objection or making a request for examination elapses, the head of a local government may make a decision without a resolution passed by the local tax deliberative committee referred to in Article 147: <Amended by Act No. 15291, Dec. 26, 2017>
1. When an objection raised or a request for examination made is unlawful (including where an objection is raised after administrative litigation, request for adjudication or request for examination has been made or a request for examination is made after an administrative litigation or request for adjudication has been made) or the period for raising an objection or making a request for examination expires, or necessary revisions are not made within the period for revision: A decision dismissing the objection or request;
2. When an objection raised or a request for examination made is deemed groundless: A decision dismissing the objection or request;
3. When an objection raised or a request for examination is deemed to be well-grounded: Cancellation of a disposition forming the subject matter of an objection or request, correction or decision of a necessary disposition: Provided, That if an additional investigation of matters, such as verification of factual relevance, is necessary to make a decision to revoke or correct a disposition or to make a necessary disposition, a decision may be made for a disposition agency to conduct a reinvestigation and revoke; or correct the disposition or to make a necessary disposition in accordance with the findings thereof.
(2) The decision under paragraph (1) shall bind the relevant disposition agency.
(3) When a decision under paragraph (1) has been made, the relevant disposition agency shall immediately issue a necessary disposition according to the gist of such decision.
(4) Where a decision on re-investigation is made pursuant to the proviso to paragraph (1) 3, the disposition agency shall conduct an investigation within the scope stated in the text of a written decision within 60 days from the date it is decided to conduct the re-investigation, and revoke or correct the disposition or make a necessary disposition. In such cases, the disposition agency may postpone the investigation, extend the investigation period or suspend the investigation pursuant to Article 83 or 84. <Newly Inserted by Act No. 15291, Dec. 26, 2017>
(5) Except as otherwise expressly prescribed for in the proviso to paragraph (1) 3 and paragraph (4), matters necessary for determining a re-investigation shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 15291, Dec. 26, 2017>
(6) Except as otherwise expressly provided for in this Act or local tax-related Acts, Section 3 of Chapter VII of the Framework Act on National Taxes shall apply mutatis mutandis to a request for adjudication.
(7) When a disposition subject to an objection or a request for examination is related to calculating tax base for the local income tax under any of Articles 91, 103, 103-19, 103-34, 103-41, and 103-47 of the Local Tax Act, the head of the relevant local government may seek opinions from the Director of the Tax Office or the head of the tax office having jurisdiction over the place for tax payment under Article 6 of the Income Tax Act or Article 9 of the Corporate Tax Act.
 Article 97 (Correction of Decision)
(1) If it is evident that a clerical writing error, miscalculation or an error similar thereto exists in the decision on an objection raised or request for examination is evident, the head of a local government may correct such decision ex officio or at the request of a person who has raised an objection or made a request for examination.
(2) Detailed procedures for making corrections under paragraph (1) shall be prescribed by Presidential Decree.
 Article 98 (Relationship with other Acts)
(1) The Administrative Appeals Act shall not apply to matters concerning any disposition forming the subject matter of the objection raised or of the request for examination made pursuant to this Act or local tax-related Acts: Provided, That Articles 15, 16, 20 through 22, 29, 36 (1), and 39 through 42 of the said Act shall apply mutatis mutandis to raising an objection or making a request for examination; and, in such cases, "committee" shall be deemed "local tax deliberative committee."
(2) Article 56 (1) of the Framework Act on National Taxes shall apply mutatis mutandis to a disposition being the subject matter of the request for adjudication.
 Article 99 (Effect, etc. of Requests)
(1) Raising an objection or requesting examination or adjudication shall have no effect on the execution of a disposition: Provided, That in cases of seized property, a disposition of public sale thereof may be deferred, as prescribed by Presidential Decree.
(2) Procedures for deliberation on a raised objection, or a request for examination or adjudication and other necessary matters shall be prescribed by Presidential Decree.
 Article 100 (Application Mutatis Mutandis of the Framework Act on National Taxes to Raising Objections, Making Request for Examination or Adjudication)
Chapter VII of the Framework Act on National Taxes (excluding Article 56 of the same Act) shall apply mutatis mutandis to matters concerning raising objections, etc. except for those prescribed in this Chapter.
CHAPTER VIII PUNISHMENT FOR VIOLATIONS AND PROCEDURES THEREFOR
SECTION 1 Common Provisions
 Article 101 (Punishment)
Any violator of this Act or local tax-related Acts shall be punished pursuant to Sections 2 and 3 of this Chapter and Articles 133 and 134.
SECTION 2 Punishment for Violations
 Article 102 (Evasion of Local Taxes)
(1) Any person who evades a local tax or obtains a refund or deduction thereof deceitfully or otherwise fraudulently shall be punished by imprisonment with labor for not more than two years, or by a fine not more than twice the amount of tax evaded, refunded or deducted (hereinafter referred to as "amount of tax evaded, etc."): Provided, That such person shall be punished by imprisonment with labor for not more than three years, or by a fine not exceeding three times the amount of tax evaded, etc.:
1. Where the amount of tax evaded, etc. is at least 300 million won, and such amount of tax evaded, etc. is at least 30/100 of the amount of tax to be reported and paid;
2. Where the amount of tax evaded, etc. is at least 500 million won.
(2) In cases falling under paragraph (1), the amount of tax evaded or to be evaded; or the amount of tax that has been refunded or deducted shall be recovered immediately.
(3) Any person who commits an offence referred to in paragraph (1) may be punished by imprisonment with labor and a fine concurrently depending on mitigating circumstances.
(4) If a person who commits an offence referred to in paragraph (1) files a revised return within two years after the statutory deadline for return under Article 49 or files an overdue return within six months after the statutory deadline for return under Article 51, in connection with the amount of tax evaded, etc., punishment may be reduced.
(5) Punishment of a person who habitually commits an offense prescribed in paragraph (1) shall be aggravated by 1/2 of the punishment.
(6) The time an act of tax evasion referred to in paragraph (1) constitutes an offence shall be as follows:
1. An item of taxation, the local tax of which is determined according to the return filed by a taxpayer: When the deadline for return expires;
2. An item of taxation, the amount of tax of which is determined and imposed by the head of a local government: When the payment deadline expires.
 Article 103 (Evasion of Disposition on Default)
(1) Where a person liable to pay taxes or a person who occupies the property of the person liable to pay taxes conceals or hides the property or conclude a fraudulent contract therefor, to avoid the execution of disposition on default or have such disposition evaded, the person liable to pay taxes or such person shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won.
(2) Where a person who takes custody of any seized article under Article 130 (1) of the Criminal Procedure Act, or a person who takes custody of any confiscated article under Article 49 (1) of the Local Tax Collection Act, conceals, hides, destroys or uses the article in his/her custody, the person shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won.
(3) Where a person, while being aware of the details stipulated in paragraphs (1) and (2), aids or abets any act or approves a fraudulent contract under paragraphs (1) and (2), he/she shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won.
 Article 104 (Retirement, Destruction, etc. of Books and Records)
Where a person retires, destroys or conceals a book or evidentiary document (including books or evidentiary documents prepared using a computer system under Article 144 (3)) required to be maintained under this Act or other local tax-related Acts, for the purpose of destroying evidence to evade local tax, within five years after the statutory deadline for return expires, he/she shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won.
 Article 105 (Interruption of Compliant Filing)
(1) Where a person who files a tax return on behalf of a person liable to pay taxes files a false return on local tax on behalf of the person liable to pay taxes for the purpose of relieving the person liable to pay taxes of tax assessment or collection, such person shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won.
(2) Where a person has caused a person liable to pay taxes to withhold filing a return on tax base (including correction of a tax return; hereinafter in this paragraph referred to as "return"), or has caused the person liable to pay taxes to file a false return or abets or advises the person liable to pay taxes not to collect or pay a local tax, the person shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding ten million won.
 Article 106 (Lending, etc. of Titles)
(1) Any person who registers business in another person's name or conducts business using business registered in another person's name for evading local tax liabilities or avoiding compulsory execution shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won.
(2) Any person who allows a third party to register business in his/her name or conduct business using business registration obtained in his/her name to evade local tax liabilities or avoid compulsory execution, shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding ten million won.
 Article 107 (Persons who Fail to Make Special Collection)
(1) Where a person subject to special collection fails to collect local tax without good cause, the person shall be punished by a fine not exceeding ten million won.
(2) Where a person subject to special collection fails to pay the collected tax without good cause, he/she shall be punished by imprisonment with labor for not more than; or by a fine not exceeding 20 million won.
 Article 108 (Imposing Administrative Fines for Violations of Orders, etc.)
(1) The head of a local government shall impose an administrative fine not exceeding five million won on any of the following persons:
1. A person who violates an order to deliver a motor vehicle or construction equipment issued under Article 56 (2) of the Local Tax Collection Act;
2. A person who gives false answers to questions posed by tax officials under the provisions concerning the right to inquire and investigate as prescribed by this Act or other local tax-related Acts, or a person who refuses or evades the enforcement of such duties of tax officials.
(2) Administrative fines under paragraph (1) shall be imposed and collected by the heads of local governments, as prescribed by Presidential Decree.
 Article 109 (Joint Penalty Provisions)
Where the representative of a corporation (including organizations deemed corporation under Article 13 of the Framework Act on National Taxes which applies mutatis mutandis in accordance with Article 153), or an agent, employee, or any other servant of a corporation or individual commits an offence under this Section in connection with the business affairs of the corporation or individual, not only shall such offender be punished, but also the corporation or individual also shall be punished by a fine under the relevant provisions: Provided, That this shall not apply where such corporation or individual has not been negligent to pay due attention to and supervise the relevant duties to prevent such offenses.
 Article 110 (Partial Exclusion from Application of Criminal Act)
Any person who commits an offence prescribed in Article 102 or 107 shall not be governed by the provisions concerning limited aggravation in application of fines for concurrent crimes as stated in Article 38 (1) 2 of the Criminal Act.
 Article 111 (Accusations)
Any violation under the provisions of this Section shall be prosecuted only if an accusation is brought by the head of a local government or an official investigating offenses referred to in Article 113.
 Article 112 (Period for Prescription of Public Prosecution)
The prescription of a public prosecution for any violation under Articles 102 through 107 and 109 shall be five years: Provided, That if a person who commits any act under Article 109 is governed by Article 8 of the Act on the Aggravated Punishment, etc. of Specific Crimes, the prescription of public prosecution for corporations under Article 109 shall expire after ten years.
SECTION 3 Procedures for Punishment of Offences
 Article 113 (Requirements for Investigation of Offenses)
In any of the following cases, a person appointed by the chief public prosecutor of the district public prosecutor's office (hereinafter referred to as "official investigating offenses") among tax officials based upon his/her workplace, etc., as prescribed by Presidential Decree, shall investigate an offense:
1. Where it is necessary to collect evidence to punish a person suspected of committing an offense;
2. Where the annual amount suspected of evading local taxes is at least the amount prescribed by Presidential Decree.
 Article 114 (Examination, Seizure and Search in Relation to Persons Suspected of Committing Offenses, etc.)
Where necessary to investigate an offense, an official investigating an offense may examine a person suspected of committing an offense or witness; or may conduct searches or seizures. In such cases, where the official conducts searches or seizures, he/she shall require persons prescribed by Presidential Decree to participate in searches or seizures.
 Article 115 (Search and Seizure Warrants)
(1) Where an official investigating an offense conducts any search and seizure to investigate an offense, he/she shall first obtain a search and seizure warrant issued by a judge of the competent district court requested by a public prosecutor having jurisdiction over his/her workplace with whom he/she files an application for the warrant: Provided, That in any of the following cases, he/she may conduct a search or seizure without the warrant after informing a person suspected of an offense and other persons prescribed by Presidential Decree of reasons for the search and seizure:
1. Where an offense under Articles 102 through 107 is being committed;
2. Where there is insufficient time to have a search and seizure warrant issued, because it is likely that the suspect might flee or destroy the criminal evidence before the officials obtain a warrant.
(2) Where an official investigating an offense conducts any search and seizure without a warrant pursuant to the proviso to paragraph (1), he/she shall request a judge of the competent district court to issue a search and seizure warrant according to the procedure for requesting a seizure and search warrant within 48 hours from the time he/she conducts such search and seizure.
(3) Where an official investigating an offense fails to obtain a search and seizure warrant under paragraph (2), he/she shall immediately return any article he/she has seized, to the principal.
(4) Where it is difficult for an official investigating an offense to transport or store an seized article, he/she may require the owner or holder, or a government office (hereinafter referred to as "owner, etc.") to store the seized article. In such cases, he/she shall receive a certificate of custody from the owner, etc. and clearly state that the article is a seized by sealing or other methods.
 Article 116 (Application Mutatis Mutandis of the Criminal Procedure Act)
Except as otherwise expressly provided for in this Act concerning search or seizure and a search and seizure warrant, the provisions on seizure and search, and a search and seizure warrant under the Criminal Procedure Act shall apply mutatis mutandis.
 Article 117 (Preparation of Examination Protocol)
Where an official investigating an offense conducts examinations, searches, seizure, or takes custody in the course of investigating an offense, he/she shall keep records of the details thereof and have such details verified by the participant of investigation or the examinee, and place a signature and seal on the report with the signature and seal of the participant and examinee attached thereto. When the participant or the examinee fails to or cannot place his/her signature and seal, he/she shall state the grounds therefor.
 Article 118 (Jurisdiction of Criminal Investigation and Transfer thereof)
(1) Criminal cases shall be assigned to officials investigating an offense who belong to the local government and have authority to impose or collect local taxes (excluding where such rights are entrusted pursuant to Article 6 and the collection of local taxes is entrusted pursuant to Article 18 of the Local Tax Collection Act).
(2) Notwithstanding paragraph (1), officials investigating an offense belonging to a City/Do may take charge of criminal cases involving Si/Gun/Gu taxes, in collaboration with officials investigating an offense who belong to Si/Gun/Gu within the jurisdiction.
(3) Where any public official in charge of criminal investigation who belongs to a local government or State organization, having no jurisdiction over a criminal case under paragraphs (1) or (2), becomes aware of a crime, he/she shall transfer such case to a official investigating an offense belonging to the local government having jurisdiction over the relevant criminal case.
(4) When any public official who belongs to a local government or State organization, having no jurisdiction over a criminal case under paragraphs (1) or (2), finds any evidence of a crime under the jurisdiction of another local government, the public official shall promptly transfer the evidence to a official investigating an offense belonging to the other local government having jurisdiction over the relevant criminal case.
 Article 119 (Request for Cooperation to State Agencies, etc.)
(1) The head of a local government may request State agencies or other local governments to provide cooperation if necessary to investigate an offense or to perform his/her duties.
(2) State agencies and local governments requested to provide cooperation pursuant to paragraph (1) shall provide cooperation except in extenuating circumstance.
 Article 120 (Types of Dispositions and Reporting of Offenses)
(1) Types of dispositions of offenses shall be as follows:
1. Notification;
2. Accusation;
3. Unsuspected.
(2) Where an official investigating an offense completes investigating the offense, he/she report thereon to the head of a local government.
 Article 121 (Disposition of Notification)
(1) When the head of a local government obtains conclusive evidence of an offense in the course of investigating the offense, he/she shall notify a person suspected of committing the offense to pay the amount equivalent to a fine (hereinafter referred to as "amount equivalent to a fine"); or to submit articles subject to confiscation, the amount to be additionally collected, the cost of serving documents, and cost of delivery and storage to the designated place, specifically stating the reasons for suspicion of crimes, as prescribed by Presidential Decree: Provided, That regarding an article subject to confiscation, the head of a local government may notify the person so that the person may express his/her intention to deliver the article (hereinafter referred to as "application for delivery").
(2) Where a person in receipt of notice under the proviso to paragraph (1) files an application for delivery in accordance with the notification and possesses an article subject to confiscation, he/she shall store the article until public sales are conducted or other necessary dispositions are taken.
(3) Where a person in receipt of notice under paragraph (1) takes measures as notified, he/she shall not undergo an investigation of, or be punished for, the same offense.
(4) Guidelines for imposing the amount equivalent to a fine shall be prescribed by Presidential Decree.
 Article 122 (Suspension of Prescription of Public Prosecution)
The period for a public prosecution shall be suspended if a disposition of notification is taken under Article 121 (1).
 Article 123 (Double Jeopardy)
Where an offender complies with notification, he/she shall not be prosecuted on the same charges.
 Article 124 (Obligation to File Criminal Charges)
(1) Where a person who receives notification under Article 121 (1) fails to take measures as notified within 15 days from the date he/she is served with notice, the head of a local government shall charge him/her with an offense: Provided, That he/she shall not be charged with an offense if he/she takes measures as notified before he/she is charged with the offense even if 15 days have passed.
(2) In any of the following cases, the head of a local government shall immediately charge a person suspected of committing an offense with an offense without undergoing the disposition to notify:
1. Where the person is deemed punished by imprisonment with prison labor circumstantially;
2. Where the person is deemed unable to raise funds to take measures as notified under Article 121 (1) or have the ability to pay;
3. Where the person is unable to receive notification because his/her place of residence is uncertain or he/she refuses to receive a document;
4. Where the person is likely to abscond or destroy evidence.
 Article 125 (Transfer of Seized Articles)
(1) Where the head of a local government seizes articles when he/she charges a person with an offense pursuant to Article 124, he/she shall transfer articles to a public prosecutor along with a list of seized articles.
(2) Regarding seized articles held by an owner, etc. pursuant to Article 115 (4), the head of a local government shall transfer a certificate of custody to a public prosecutor, and notify the owner, etc. of the fact that he/she has transferred seized articles to a public prosecutor.
 Article 126 (Notification of Acquittal and Release of Seizure)
When the head of a local government fails to obtain conclusive evidence of an offense as a result of investigation of the offense, he/she shall notify the suspect of such fact; and where he/she has seized articles, he/she shall order the revocation of seizure.
CHAPTER IX SUBMISSION AND MANAGEMENT OF TAXATION DATA
 Article 127 (Scope of Agencies Submitting Taxation Data)
Agencies, etc. obligated to submit taxation data (hereinafter referred to as “agencies submitting taxation data”) shall be as follows:
1. Independent agencies and central government agencies (including agencies commissioned or entrusted with the duties of independent agencies and central government agencies) under Article 6 of the National Finance Act, subordinate administrative agencies, and auxiliary agencies;
2. Local governments, agencies commissioned or entrusted with the duties of local governments, and associations of local government agencies (hereinafter in this Article referred to as "local governments, etc.");
3. The Financial Supervisory Service established under the Act on the Establishment, etc. of Financial Services Commission and corporations, agencies or organizations, such as banks, companies, cooperatives and federations thereof, community credit cooperatives and federations thereof, insurance companies, postal service agencies, etc. under subparagraph 1 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality;
4. Institutions or organizations funded or subsidized by public institutions or the Government;
5. Institutions or organizations funded or subsidized by local government-directly operated enterprises, local government-invested public corporations, local government public corporations or local governments under the Local Public Enterprises Act;
6. Institutions or organizations prescribed by Presidential Decree among institutions or organizations established under Acts other than the Civil Act or supported by the State, local governments, etc. which are supervised, audited or examined by the agencies referred to in subparagraph 1 or 2, or other institutions or organizations established for the public interest.
 Article 128 (Scope of Taxation Data)
(1) Taxation data to be submitted by agencies submitting taxation data are any of the following, which are directly necessary for imposing and collecting local taxes and managing tax payment: <Amended by Act No. 13635, Dec. 29, 2015>
1. Where authorization, permission, patent, registration, record, report, etc. are granted or obtained pursuant to relevant Acts, the data related thereto;
2. Data concerning the findings of investigation, inspection, etc. conducted under relevant Acts;
3. Data concerning the performance of business, sale, production, construction, etc. reported under relevant Acts;
4. Data concerning the status of payments of various subsidies, insurance benefits, deductions, etc. paid by agencies submitting taxation data and concerning business performance of members, entrepreneurs, etc. of the institutions or organizations referred to in subparagraph 6 of Article 127;
5. Data necessary for collecting local taxes (including national taxes levied jointly with local taxes) in arrears pursuant to this Act and local tax-related Acts.
(2) The specific scope of taxation data under paragraph (1) shall be prescribed by Presidential Decree for each agency submitting taxation data.
 Article 129 (Methods of Submitting Taxation Data)
(1) The heads of agencies submitting taxation data shall submit taxation data quarterly to the Minister of the Interior and Safety or the heads of local governments according to procedures and methods prescribed by Presidential Decree by the end of the month following the month in which the expiration date of each quarter falls: Provided, That the timing for submitting taxation data may be otherwise determined by Presidential Decree, in consideration of the frequency of occurrence and time of utilization of taxation data. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Where the heads of agencies submitting taxation data submit taxation data under paragraph (1), they shall also submit a list of taxation data received or prepared thereby.
(3) The Minister of the Interior and Safety or the heads of local governments in receipt of a list of taxation data under paragraph (2) may request the agencies submitting taxation data to add or supplement taxation data if taxation data submitted is partially omitted or such data is deemed to require supplementation. <Amended by Act No. 14839, Jul. 26, 2017>
(4) Necessary matters concerning the forms of taxation data shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 130 (Requests for Cooperation in Collecting Taxation Data)
(1) Where the Minister of the Interior and Safety deems it necessary to operate a local tax information and communications network, he/she may request the heads of agencies submitting taxation data that keeps data, other than taxation data referred to in Article 128, deemed useful taxation data, to cooperate in collecting such data. <Amended by Act No. 14839, Jul. 26, 2017>
(2) If data, other than taxation data referred to in Article 128, deemed useful as taxation data exist, the head of a local government may request the heads of agencies submitting taxation data that keeps such data, to cooperate in collecting the same.
(3) The heads of agencies submitting taxation data, in receipt of a request to provide cooperation under paragraphs (1) and (2) shall cooperate therein except in extenuating circumstances.
 Article 131 (Responsibilities of Agencies Submitting Taxation Data)
(1) The heads of agencies submitting taxation data shall occasionally examine whether affiliated public officials, executive officers or employees perform their responsibility to submit taxation data compliantly pursuant to this Chapter.
(2) If the agencies submitting taxation data, or public officials, executive officers or employees affiliated therewith fail to conscientiously perform their responsibility to submit taxation data pursuant to this Chapter, the Minister of the Interior and Safety or the head of a local government shall notify the heads of agencies supervising, auditing or examining such agencies of such fact. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 132 (Duty to Keep Confidentiality)
(1) No public official belonging to the Ministry of the Interior and Safety and local governments shall provide or disclose taxation data (including data collected under Article 130; hereinafter in this Article the same shall apply) obtained under this Chapter, to any third person or use it for other than the originally intended purpose: Provided, That this shall not apply in any of the following cases: <Amended by Act No. 14839, Jul. 26, 2017>
1. Where such data is provided pursuant to the proviso to Article 86 (1) or Article 86 (2);
2. Where such data is provided pursuant to Article 135 (2).
(2) If any public official belonging to the Ministry of the Interior and Safety and local governments is requested to provide taxation data, in violation of paragraph (1), the public official shall refuse such request. <Amended by Act No. 14839, Jul. 26, 2017>
(3) No one who has obtained taxation data under the proviso to paragraph (1) shall provide or disclose it to any third person or use it for any purpose other than as originally intended.
 Article 133 (Punishment for Violations of Responsibility to Maintain Confidentiality)
Any person who provides or divulges taxation data to any third person or uses taxation data for other than the originally intended purpose, in violation of Article 132 (1) or (3) shall be punished by imprisonment with labor for not more than three years, or by a fine not exceeding 30 million won.
 Article 134 (Concurrent Imposition of Imprisonment with Labor and Fines)
Both imprisonment with labor and a fine prescribed in Article 133 may be imposed concurrently.
CHAPTER X INFORMATIZATION OF LOCAL TAX AFFAIRS
 Article 135 (Informatization of Local Tax Affairs)
(1) To increase the efficiency and transparency of local tax affairs, the heads of local governments shall conduct affairs provided for by this Act or local tax-related Acts, using a local tax information and communications network: Provided, That this shall not apply if any failure under Article 24 (2) occurs.
(2) To ensure local tax-related data is managed efficiently, and convenience in tax payment, such as electronic returns, electronic payment, electronic service, etc., the Minister of the Interior and Safety shall establish a local tax information and communications network and conduct the following affairs: <Amended by Act No. 14839, Jul. 26, 2017>
1. Providing (limited to providing to the heads of local governments) and managing taxation data obtained under Article 129; and data collected under Article 130;
2. Providing tax information obtained under Article 86 (1) 5: Provided, That it may be provided only in any of the following cases:
(a) Where such information is requested by a State agency to use for the purpose of imposing or collecting taxes;
(b) Where such information is requested by the Commissioner of the Statistics Korea for the purpose of compiling national statistics;
(c) Where such information is requested by an institution established to operate the social insurance under subparagraph 2 of Article 3 of the Framework Act on Social Security, to conduct its competent affairs under the relevant Act;
(d) Where such information is requested by a State agency, a local government or a public institution under the Act on the Management of Public Institutions with the relevant party’s consent, to examine eligibility for benefits, assistance, etc.;
(e) Where such information is deemed necessary to conduct the affairs under Article 20 (2) 1 and 2 of the Act on the Collection, etc. of Local Non-Tax Revenue;
(f) Where such information is requested pursuant to other Acts;
3. Providing information necessary for imposing and collecting local taxes, tax litigation, tax investigation, confirmation of default, and disposition on default, needed by the heads of local governments;
4. Managing statistics data, etc. of local taxes obtained from local governments under Article 149;
5. Providing services to facilitate tax payment, such as electronic returns, electronic payment, electronic service, etc.;
6. Providing other services for taxpayer convenience.
(3) In increasing the efficiency and transparency of local tax affairs and for taxpayers' convenience, the Minister of the Interior and Safety may formulate and implement a plan to connect with other information processing systems involving local tax affairs. <Amended by Act No. 14839, Jul. 26, 2017>
(4) Matters necessary for procedures and standards and methods for handling matters referred to in paragraphs (1) and (2), and other related matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 14839, Jul. 26, 2017>
(5) To efficiently promote informatization projects related to local taxes, such as the operation of local tax information and communications networks, etc., the Minister of the Interior and Safety and the heads of local governments may entrust the Korea Local Information Research and Development Institute established under Article 72 of the Electronic Government Act with local tax-related informatization affairs. <Amended by Act No. 114839, Jul. 26, 2017>
 Article 136 (Formulating and Implementing Operating Plans for Information System for Receipt of Local Tax)
(1) To enable taxpayers to conveniently inquire local taxes of all local governments and to pay the same, the Minister of the Interior and Safety shall formulate and implement an operating plan regarding the information system for receipt of local tax payments, including the following matters: <Amended by Act No. 14839, Jul. 26, 2017>
1. Connecting the local tax information and communications network with information and communications networks of local tax collection agencies;
2. Real-time processing local tax payment, and safe management and operating the integrated receipt processing system;
3. Improving various forms to increase convenience for paying local taxes;
4. Matters concerning nationwide inquiries into local tax, local tax payment and procedures for processing receipts, and concerning improving efficiency and safety;
5. Other matters necessary for formulating and implementing operating plans, such as the scope, etc. of institutions prescribed by Presidential Decree that are involved in the information system for receipt of local tax.
(2) When the Minister of the Interior and Safety formulates and implements an operation plan regarding the information system for receipt of local taxes under paragraph (1), he/she shall preferentially take taxpayers' convenience into consideration and ensure that no regional discrimination exists in connection with the use thereof. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 137 (Establishing, etc. Organization in Exclusive Charge of Managing Local Revenue Information)
(1) An organization exclusively in charge of managing local revenue information may be established under the Ministry of the Interior and Safety to take charge of collecting, managing and providing data, etc. necessary to impose and collect local revenues (referring to local taxes and non-tax revenues; hereinafter in this Article the same shall apply). <Amended by Act No. 14839, Jul. 26, 2017>
(2) Matters necessary for establishing and operating the organization in exclusive charge of managing local revenue information under paragraph (1) shall be prescribed by Presidential Decree.
 Article 138 (Preferential Treatment to Electronic Service, Electronic Payment, etc.)
A person who has applied for electronic service or made electronic payments through the local tax information and communications network; or has paid local tax before the payment deadline may be given preferential treatment, as prescribed by municipal ordinance of local governments.
CHAPTER XI SUPPLEMENTARY PROVISIONS
 Article 139 (Tax Managers)
(1) If a taxpayer does not have an address or place of residence in Korea or intends to move his/her address or place of residence to any foreign country, he/she shall appoint a tax manager to manage matters concerning local tax.
(2) A taxpayer who has appointed a tax manager under paragraph (1) shall report such fact to the head of a relevant local government, as prescribed by Presidential Decree. The same shall also apply to dismiss or replace the tax manager.
(3) If a taxpayer fails to file a report as referred to in paragraph (2), the head of a local government may appoint the taxpayer's property or business manager as a tax manager.
(4) Where a person liable to pay property tax does not directly use or profit from the relevant property, he/she may appoint a user or beneficiary of such property as a tax manager and file a report thereon.
(5) Even while a person liable to pay property tax fails to appoint a user or beneficiary of the relevant property as a tax manager; and shall report thereon under paragraph (4), the head of a local government may appoint such user or beneficiary of the relevant property as a tax manager.
(6) A person liable to pay property tax of trust property under Article 107 (1) 3 of the Local Tax Act may appoint the truster as a tax manager and file a report thereon.
 Article 140 (Tax Officials' Authority to Inquire and Inspect)
(1) A tax official may inquire of any of the following persons or inspect books, documents and other articles of such persons if necessary to conduct an investigation in connection with imposing and collecting local taxes:
1. A person liable to pay taxes or person deemed to have tax liability;
2. A person subject to special collection;
3. A person who has made transactions money or articles with any person referred to in subparagraph 1 or 2, or persons deemed to have made such transactions;
4. Other persons deemed directly related to imposing and collecting local taxes.
(2) In cases falling under paragraph (1), a relevant tax official shall carry a certificate verifying his/her identity and produce it to the relevant persons.
(3) A tax official may require persons referred to in subparagraphs of paragraph (1) to file a report or submit necessary books, documents or articles, if necessary for conducting an investigation.
 Article 141 (Perusing, etc. Documents concerning Sale, Registration and Record)
Where a tax official requests to peruse or copy documents concerning the sale, registration, record and other status of land, buildings, etc. to impose and collect an acquisition tax and property tax, relevant agencies shall cooperate therewith.
 Article 142 (Using Data on Statement of Payment)
Notwithstanding Article 4 (4) of the Act on Real Name Financial Transactions and Confidentiality, a tax official may use a statement of payment concerning interest income or dividend income submitted pursuant to Articles 103-13 and 103-29 of the Local Tax Act, for any of the following:
1. Verifying evidentiary data that may prove suspicion of evading a local tax;
2. Inquiry about the property of a delinquent taxpayer and collecting delinquent local taxes.
 Article 143 (Deposition of Money to be Granted)
(1) Money to be granted to a creditor, taxpayer or any third person pursuant to this Act, local tax-related Acts and municipal ordinance enacted pursuant to the delegation thereunder may be deposited in the depository designated pursuant to Article 38 of the Local Accounting Act.
(2) When a tax official has made a deposit pursuant to paragraph (1), he/she shall notify a creditor, taxpayer or any third persons of such fact.
 Article 144 (Keeping and Preserving Books, etc.)
(1) A taxpayer shall conscientiously prepare and keep books and evidentiary documents, as prescribed by this Act and Acts related to local taxes.
(2) A taxpayer shall preserve books and evidentiary documents under paragraph (1) for five years from the date the statutory deadline for return expires.
(3) A taxpayer may prepare all or some books and evidentiary documents under paragraph (1) using a computer system. In such cases, he/she shall preserve the handling process thereof, etc. in magnetic tape, diskettes, or other data storage devices in accordance with standards prescribed by Presidential Decree.
(4) In applying paragraph (1), when a taxpayer has converted books and evidentiary documents into electronic documents under Article 5 (2) of the Framework Act on Electronic Documents and Transactions, and has kept them in the officially recognized electronic document center under Article 31-2 of the same Act, he/she shall be deemed to have kept books and evidentiary documents: Provided, That the foregoing shall not apply to books and evidentiary documents prescribed by Presidential Decree, which are easily forgeable or alterable, such as contracts.
 Article 145 (Issuance of Receipt of Documents)
(1) If the head of a local government receives tax base returns, revised tax base returns and requests for correction, documents relating thereto and other documents prescribed by Presidential Decree, he/she shall issue a receipt: Provided, That he/she may opt not to issue a receipt in cases prescribed by Presidential Decree, such as when filing returns by mail.
(2) Where the head of a local government has received returns, etc. under paragraph (1) through a local tax information and communications network, he/she may provide an electronic receipt upon filing the returns.
 Article 146 (Payment of Rewards)
(1) The head of a local government may issue a reward to any of the following persons, within budgetary limits. In such cases, no such reward shall exceed 100 million won: <Amended by Act No. 4839, Jul. 26, 2017>
1. A person who has provided important data for calculating the amount of tax evaded, regarding a person who evaded a local tax or the amount of tax unlawfully refunded or exempted;
2. A person who has reported concealed property of a delinquent taxpayer;
3. A person who has helped discover abandoned or hidden sources of tax revenues and impose taxes;
4. A person who has contributed to collecting an amount of taxes in arrears prescribed by Ordinance of the Ministry of the Interior and Safety;
5. A person who is deemed by the head of a local government to have rendered distinguished service in collecting local taxes, whose case corresponds to subparagraphs 1 through 4.
(2) In cases falling under paragraph (1) 1 and 2, where the amount of tax evaded, the amount of tax unlawfully refunded or exempted, or the amount of tax collected through a report on hidden property, is less than the amount prescribed by Presidential Decree; or where a public official has provided data or reported hidden property in connection with his/her duties, the head of a local government shall not issue a reward.
(3) “Important data" under paragraph (1) 1 means the following:
1. Data or books of account stating specific facts, such as customers, the date of transactions or the period for transactions, transaction items, transaction quantities and the amount of transactions, by which the details of local tax evasion or unlawfully refunded or exempted taxes may be verified (excluding facts not deemed to be of practical use for taxation due to a taxpayer's failure to pay bills, closure of business or bankruptcy as at the time data or accounting books are submitted, and those under tax investigation; hereinafter in this Article referred to as "data, etc.");
2. Specific information by which whereabouts of data, etc. may be confirmed;
3. Data, etc. prescribed by Presidential Decree, which may be deemed important in light of other circumstances, such as techniques, details, sizes, etc. of local taxes evaded or unlawfully refunded or exempted.
(4) “Concealed property" in paragraph (1) 2 means cash, deposits, stocks and other valuable tangible or intangible property hidden by a taxpayer: Provided, That any of the following properties shall be excluded:
1. Property that has become subject to legal action for nullifying a fraudulent act under Article 39 of the Local Tax Collection Act;
2. Property on which a revenue officer has begun investigating or undergoing the procedure for disposition for failure to pay tax after he/she learned that it was hidden;
3. Other property prescribed by Presidential Decree, deemed exempt from reporting concerning a taxpayer's hidden property.
(5) Data under paragraph (1) 1 and 2 shall be provided or reported in writing, the name and address clearly stated, signed or sealed. In such cases, objectively verified evidential data, etc. shall be attached thereto.
(6) No public official in charge of affairs related to giving rewards under paragraph (1) 1 or 2 shall use matters related to a report or information, such as the identity of a data provider or a reporter, for other than the originally intended purposes, provide or divulge such matters to others.
(7) Matters necessary for criteria and methods for giving rewards under paragraph (1) 1 and 2, a period for reporting, methods for providing data and reporting, etc. under paragraph (5) shall be prescribed by Presidential Decree.
(8) Matters necessary for eligibility to receive rewards, criteria and methods for giving rewards, etc. under paragraph (1) 3 through 5 shall be prescribed by municipal ordinance of a local government.
(9) No head of any local government shall give money or articles to any person by reason that he/she has contributed to an increase in tax revenues, such as paying the payment of local taxes, unless he/she complies with the provisions on rewards provided in this Act or other statutes.
 Article 147 (Establishing and Operating Local Tax Deliberation Committees)
(1) A local tax deliberation committee (hereinafter referred to as the "Committee") shall be established under each local government to deliberate on or pass resolution on the following matters:
1. Matters concerning pre-assessment reviews under Article 88;
2. Matters concerning raising objections and requesting examination under Articles 90 and 91;
3. Matters concerning whether to publicize delinquency information of the delinquent taxpayers under Article 11 (3) of the Local Tax Collection Act;
4. Matters prescribed by local tax-related Acts to undergo deliberation by the Committees;
5. Other matters the heads of local governments deem necessary.
(2) The organization and operation of the Committees, and other important matters shall be prescribed by Presidential Decree.
(3) Members who are not public officials among the Committee members shall be deemed public officials in the application of penalty provisions under the Criminal Act or other Acts.
 Article 148 (Examination Committee for Established Rule related to Local Taxes)
(1) To deliberate on the interpretation of this Act, local tax-related Acts and established rule, etc. related to local taxes, the Examination Committee for Established Rule Related to Local Taxes shall be established under the Ministry of the Interior and Safety. <Amended by Act No. 14839, Jul. 26, 2017>
(2) If any ground is deemed to make it difficult to expect a member of the Examination Committee for Established Rule Related to Local Taxes to perform deliberations impartially is deemed to exist, such member shall be excluded from the meetings of the Examination Committee for Established Rule Related to Local Taxes or shall refrain from participating therein, as prescribed by Presidential Decree.
(3) Methods of establishing, organizing and operating the Examination Committee for Established Rule Related to Local Taxes under paragraph (1), procedures and methods for processing inquiries and replies related to interpretation, and other necessary matters shall be prescribed by Presidential Decree.
(4) Members who are not public officials among the members of the Examination Committee for Established Rule Related to Local Taxes referred to in paragraph (1) shall be deemed public officials in the application of penalty provisions under the Criminal Act or other Acts.
 Article 149 (Collation and Publication of Statistics)
(1) The heads of local governments shall collate and publicize statistics obtained by analyzing and processing local tax-related data.
(2) The heads of local governments shall submit data on operating local tax, such as statistical data, estimates on local tax, etc. to the Minister of the Interior and Safety. <Amended by Act No. 14839, Jul. 26, 2017>
(3) The Minister of the Interior and Safety shall analyze the operating status of local tax based on data obtained under paragraph (2); and shall publicize the results thereof. <Amended by Act No. 14839, Jul. 26, 2017>
(4) Necessary matters regarding the details of statistical data, timing and methods for publicizing statistical data, submission and analysis of data, etc. shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 150 (Guidance, etc. on Managing Local Taxes)
(1) Where necessary to impose and collect local taxes, and to facilitate management and enforcement of other matters provided for by this Act or local tax-related Acts, the Minister of the Interior and Safety or a Mayor/Do Governor may guide or advise local governments (in cases of a Mayor/Do Governor, limited to Sis/Guns/Gus within the relevant City/Do; hereinafter in this Article the same shall apply) or examine whether there are violations in the management and enforcement thereof. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Where necessary for guidance or advice and examination under paragraph (1), the Minister of Interior and Safety or a Mayor/Do Governor may request local governments to submit data. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 151 (Establishing and Operating Local Tax Research Institute)
(1) To conduct research, investigations, education, etc. necessary for developing local tax systems and administration, a local tax research institute (hereinafter referred to as the "Korea Institute of Local Finance") that is funded and operated by local governments may be incorporated.
(2) The Korea Institute of Local Finance shall have a board of directors consisting of no more than 12 directors, including a chairperson and a president; and shall appoint two auditors, having due regard to gender equality. In such cases, the directors shall be selected from among persons who have profound knowledge in local tax, such as public officials, professors, etc.; and shall be nominated in equal numbers respectively by the Special Metropolitan City Mayor, Metropolitan City Mayors, the Special Self-Governing City Mayor, Do Governors, the Special Self-Governing Province Governor, and the heads of Sis/Guns/Gus by mutual consent among themselves; however, the chairperson shall be selected from among persons nominated by the mutual consent of the Special Metropolitan City Mayor, Metropolitan City Mayors, the Special Self-Governing City Mayor, Do Governors and the Special Self-Governing Province Governor, following resolution thereon by the board of directors.
(3) The president and the auditors of the Korea Institute of Local Finance shall be appointed by the chairperson following a resolution by the board of directors; and the chairperson and the auditors shall work on a part-time basis.
(4) Matters concerning establishing and operating the Korea Institute of Local Finance shall be determined by the articles of incorporation, and Article 32 of the Civil Act and the Act on the Establishment and Operation of Public Interest Corporations (excluding Article 5 of the same Act) shall apply mutatis mutandis to other matters not provided by this Act.
 Article 152 (Establishing and Operating Local Tax Development Fund)
(1) To cover expenses incurred in conducting research on, investigations, evaluation, etc., of local tax, local governments shall establish and operate a local tax development fund. In such cases, local governments shall accumulate, for the local tax development fund, an amount calculated by applying the rate prescribed by Presidential Decree to the amount of revenue from ordinary tax on account settlement (excluding property taxes for the Special Metropolitan City portion under Article 9 in cases of the Special Metropolitan City, and including property taxes for the Special Metropolitan City portion granted under Article 10 in cases of autonomous Gus within the jurisdiction of the Special Metropolitan City) for the year before the preceding year.
(2) Matters concerning accumulating, using, operating and managing the local tax development fund shall be prescribed by Presidential Decree.
(3) Where the amount to be contributed to the Local Tax Research Institute by reserving it as the local tax development fund pursuant to paragraphs (1) and (2), is contributed to the Local Tax Research Institute based on the budget, the obligation to accumulate the local tax development fund under paragraph (1) shall be deemed fulfilled, in such case.
 Article 152-2 (Sharing of Computerized Information on Registration of Family Relationships)
To process the following affairs, the heads of local governments may share (including the processing defined in subparagraph 2 of Article 2 of the Personal Information Protection Act) computerized information data referred to in Article 9 (1) of the Act on the Registration, etc. of Family Relationships according to the Electronic Government Act:
1. Succeeding to tax liability of an ancestor by heirs under Article 42;
2. Imposing secondary tax liability on an oligopolistic stockholder under Article 46;
3. Paying local tax refunds payable to the deceased to a principal successor under Article 60 (7);
4. Reporting or permitting succession to the status of an applicant for or requester of a pre-assessment review, objection, or request for examination under the Administrative Appeals Act that applies mutatis mutandis in accordance with Article 88 (5).
[This Article Newly Inserted by Act No. 15291, Dec. 26, 2017]
 Article 153 (Application Mutatis Mutandis of Framework Act on National Taxes, etc.)
Except as otherwise expressly provided for in this Act and local tax-related Acts, the Framework Act on National Taxes and the National Tax Collection Act shall apply mutatis mutandis to imposing and collecting local taxes.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Changes in Periods of Exclusion from Imposing Local Taxes for Acquisition by Oligopolistic Stockholders)
The amended provisions of the proviso to Article 38 (1) 2 shall begin to apply from the first cases for which the date a local tax can be imposed commences after this Act enters into force.
Article 3 (Applicability to Imposing Additional Taxes on Overstated Tax Refunds)
Matters concerning imposing additional taxes on overstated tax refunds among the amended provisions of Article 54 shall begin to apply from cases where a tax return for overstated tax refund is filed after this Act enters into force.
Article 4 (Applicability to Imposing Additional Taxes on Unconscientious Refunds)
Matters concerning imposing additional taxes on unconscientious refunds among the amended provisions of Article 55 shall begin to apply from cases where an overstated tax refund is received after this Act enters into force.
Article 5 (Applicability to Reduction and Exemption of Additional Taxes)
The amended provisions of Article 57 (2) shall begin to apply from the first return filed after the expiration of the deadline after this Act enters into force.
Article 6 (Applicability to Additional Charges on Local Tax Refunds)
The amended provisions of Article 62 (1) 7 shall begin to apply from the first local tax refund accruing after this Act enters into force.
Article 7 (Applicability to Pre-Assessment Review)
The amended provisions of Article 88 (5) shall begin to apply from the pre-assessment review requested after this Act enters into force.
Article 8 (Applicability to Raising Objections or Requesting for Examinations)
The amended provisions of Article 98 (1) shall begin to apply from the first objection raised or examination requested after this Act enters into force.
Article 9 (General Transitional Measures)
Money collectible by a local government which imposed or to be imposed pursuant to the former provisions before this Act enters into force shall be governed by the former provisions.
Article 10 (Transitional Measures concerning Extending Period for Requesting Correction, etc.)
Notwithstanding the amended provisions of Article 50 (2), cases for which the period for request under the former provisions of Article 51 (1) expires before this Act enters into force shall be governed by the former provisions.
Article 11 (Transitional Measures concerning Punishment, etc. of Local Tax-Related Violations)
(1) Punishment of violations committed before January 1, 2011 shall be governed by Article 84 of the former Local Tax Act (referring to the same Act before being amended by Act No. 10221).
(2) Lump sum imposition and collection of local taxes evaded before January 1, 2011 shall be governed by Article 85 of the former Local Tax Act (referring to the same Act before being amended by Act No. 10221).
Article 12 (Transitional Measures concerning Penalty Provisions, etc.)
(1) Punishment, administrative fines, concurrent penalty provisions, partial exclusion of the application of the Criminal Act, prosecution and the period for prescription of public prosecution for acts committed before April 1, 2012, shall be governed by the Procedure for the Punishment of Tax Evaders Act which applies mutatis mutandis in accordance with Articles 132 and 133 of the former Framework Act on Local Taxes (referring to the same Act before being amended by Act No. 11136) and the Punishment of Tax Offenses Act which applies mutatis mutandis in accordance with Article 134 (1) of the same Act.
(2) Procedures for punishing offences committed before April 1, 2012 shall be governed by the Procedure for the Punishment of Tax Evaders Act which applies mutatis mutandis in accordance with Article 134 (2) of the former Framework Act on Local Taxes (referring to the same Act before being amended by Act No. 11136).
Article 13 Omitted.
Article 14 (Relationship to other Statutes)
Where any other statute (including municipal ordinances) cites the former Framework Act on Local Taxes or any of the provisions thereof as at the time this Act enters into force, it shall be deemed to cite this Act or said provisions, if provisions corresponding thereto exist in this Act.
ADDENDA <Act No. 14524, Jan. 4, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That Article 4 of the Addenda shall enter into force on March 28, 2017, ---<Omitted>---.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 15291, Dec. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2018.
Article 2 (Applicability to Additional Taxes on Understated Returns and on Overstated Tax Refunds on Tax Returns, and Additional Taxes on Unconscientious Payment and Unconscientious Refunds)
The amended provisions of Articles 54 (3) 2 and 55 (2) shall begin to apply where a revised tax base return of local income tax on capital gains is filed or the same tax base is determined or corrected.
Article 3 (Applicability to Reduction or Exemption of Additional Taxes)
The amended provisions of Article 57 (2) 4 shall begin to apply from where a return or revised return is filed not later than the deadline for final return which arrives after this Act enters into force.
Article 4 (Applicability to Payment of Additional Charges on Local Tax Refunds)
The amended provisions of Article 62 (1) 7 (c) shall begin to apply from where a domestic corporation becomes dissolved after this Act enters into force.
Article 5 (Applicability to Advance Notice of Tax Investigations)
The amended provisions of the main sentence of Article 83 (1) shall begin to apply from the first advance notice of a tax investigation given after this Act enters into force.
Article 6 (Applicability to Decisions on Objections or Requests for Examination, etc.)
(1) The proviso to Article 96 (1) (including cases of application mutatis mutandis under Article 88 (7)) shall begin to apply from the first pre-assessment review requested, objection raised, or request for examination filed after this Act enters into force.
(2) Notwithstanding paragraph (1), where an objection is raised pursuant to the former provisions before this Act enters into force and a request for examination is filed after this Act enters into force, the former provisions shall govern, notwithstanding the amended provisions of the proviso to Article 96 (1).