A Classic Statment on Corruption in Korea
The tax office investigated the lawyer and imposed an income tax of 4.58 billion won after concluding that “excluding over 7.8 billion won in his report is an unrighteous, fraudulent behavior where a tax imposable period of 10 years could be applied.” In general, the period is five years since the day national tax could be imposed.
At this, the lawyer claimed, “Back then, it was a widespread practice to exclude additional contingency fees from the tax report. Therefore, this is not a fraudulent behavior but a simple unreported earning, for which the imposable period is five years. Those five years have already passed.”