The National Tax Service announced on the 9th that it concluded 53 cases of the first tax audit launched in September of last year, uncovering 389.8 billion won and imposing 178.5 billion won in additional taxes.
Among these, the imposed taxes of three ramen, ice cream, and liquor manufacturers accounted for approximately 150 billion won, representing about 85% of the total imposed taxes. It was found that they evaded taxes by exploiting monopolistic structures, raising prices to reap excessive profits, and siphoning off increased earnings.
Beer manufacturer OB Beer paid rebates of approximately 110 billion won to sales outlets and others while disguising advertising contracts as advertising expenses. In this manner, over the past 5 years, 16.4% of total advertising expenses were spent on rebates. Additionally, while receiving services from related companies engaged in raw material procurement agency businesses, it overpaid commission fees exceeding 45 billion won. This burden was entirely passed on to consumers, resulting in product prices rising 22.7% over the past 5 years.
The ice cream manufacturer overpaid 25 billion won in logistics costs to related companies, which also led to product price increases of approximately 25.0%.
The National Tax Service is continuing intensive tax verification of companies that excessively raise product prices and inflate costs by leveraging monopolistic positions.
Following audits of the furniture and vinyl film industries in December of last year (2nd tax audit) and sugar and furniture cartel companies last month (3rd tax audit), it recently launched the 4th tax audit.
The investigation targets a total of 14 companies including processed food manufacturers such as flour, agricultural and livestock product distributors such as fresh produce, and franchise headquarters. The total amount of suspected tax evasion by these companies alone reaches approximately 500 billion won.
Daehan Flour, which was indicted by prosecutors on the 2nd on charges of collusion, is also one of the target companies, with estimated tax evasion reaching 120 billion won. The company colluded on prices and shipment volumes for several years and raised product prices by 44.5%. Evidence was also found of inflating raw material purchase unit prices to excessively report costs, while handling private expenses such as the honorary chairman's funeral costs and repair and maintenance fees of luxury sports cars owned by the owner as corporate funds.
Another monopoly company manufacturing soy sauce, gochujang, and fermented seasonings is suspected of raising prices by 10.8% despite declining raw material costs and concentrating profits to the owner's family. The company's operating profit increased by over 300% compared to the previous year last year. The National Tax Service estimates that the company improperly reduced income and evaded approximately 30 billion won in taxes by purchasing packaging containers at inflated prices from corporations owned by the owner's children to conceal sharply increased profits.
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The beer enthusiasts around will be upset.
