Ministry of Finance and Economy to Improve Recurring National Assembly Audit Issues, Including Tax Revenue Estimation Accuracy

The Ministry of Finance and Economy announced today (October 2) that it is working to improve issues frequently pointed out during National Assembly audits, such as enhancing the accuracy of tax revenue estimations and resolving unauthorized occupation of state-owned land.

According to the inspection results, there were a total of five issues that had been pointed out two or more times in parliamentary audits over the past five years.

Regarding the resolution of unauthorized occupation of state-owned land, the ministry plans to push for revisions to the State Property Act within the year, centered on strengthening authority to identify unauthorized occupants.

To improve the accuracy of tax revenue forecasting, the ministry redesigned forecasting models for corporate tax and other revenues through technical assistance from the International Monetary Fund (IMF), and made annual tax revenue re-estimations mandatory through an amendment to the National Finance Act.

The ministry plans to continue efforts to improve forecasting accuracy by refining estimation models in cooperation with government agencies and experts going forward.

To address the ongoing issue of the national tax reduction rate exceeding the statutory limit regarding tax expenditures, the ministry will review all tax expenditures from scratch and overhaul conventional tax reductions.

It also explained that real estate tax system amendments aimed at ensuring fair taxation and enhancing tax equity have been submitted to the National Assembly and are awaiting review.

The Ministry of Finance and Economy is currently undergoing related procedures, including legal revisions, to complete measures for these four issues within this year.

Preventing tax avoidance by multinational corporations is a matter that requires international consensus, and the ministry has decided to continue procedures for improvement in the future.

The Ministry of Finance and Economy stated, "We will continue our efforts to ensure that the National Assembly's points of criticism lead to substantive institutional improvements and results," adding, "We will also humbly listen to issues raised in this year's parliamentary audit and actively seek ways to improve."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.