The National Tax Service (NTS) has caught a large number of individuals suspected of tax evasion, including those who transferred ownership of other homes to acquaintances before selling high-priced apartments to qualify for tax exemptions.

Person A, who owned two homes, transferred a low-priced apartment they were living in to an acquaintance of their mother just before selling a high-priced apartment with significant capital gains.

A then sold the high-priced apartment for approximately 2 billion won and filed for a capital gains tax exemption, claiming to be a single-home owner to reduce their tax burden.

The NTS focused on the fact that A continued to live in the low-priced apartment even after the transfer, and that A paid the acquisition and property taxes on behalf of the mother's acquaintance, while also providing monthly payments of several hundred thousand won as a reward.

The NTS imposed 1 billion won in back taxes on A and referred A, their mother who orchestrated the transaction, and the acquaintance who lent their name to the prosecution on charges of tax evasion.

Another multi-home owner, B, transferred a multi-family housing building to their younger sibling before selling a high-priced apartment, and then filed for a capital gains tax exemption on the apartment.

However, the NTS confirmed that there were no records of payment transactions between B and their sibling, and that B continued to collect monthly rent even after the transfer. Consequently, the NTS imposed 400 million won in capital gains tax and 200 million won in penalties.

Since October of last year, the NTS has investigated 104 individuals suspected of various real estate tax evasion schemes, collecting 31.8 billion won in back taxes to date and referring 6 individuals to the prosecution.

[Oh Sang-hoon / Director of Property Taxation, National Tax Service: We have uncovered numerous cases where individuals unfairly claimed capital gains tax exemptions for single-home owners through sham transactions to avoid taxes. We will continue to closely scrutinize illicit transactions between family members aimed at tax avoidance.]

Other cases caught included individuals who evaded gift taxes while inheriting apartments from their parents, or those who created slush funds by underreporting company revenue and used the money to help their spouses purchase apartments.

As the imposition of heavy capital gains taxes on multi-home owners has resumed, the NTS plans to further strengthen its verification of tax evasion, anticipating an increase in illicit transactions and gifts.

Reported by Sim Useop | Video by Lee Jae-young | Video Editing by Kim Jong-tae | Produced by SBS Digital News