Finally the National Tax Service ruled in favor of Hana Bank in its 1.8 billion tax evasion case. On February, NTS forced Hana Bank to pay up to 1.7 trillion won ($1.8 billion) in penalty taxes for unfair corporate income tax evasion in the course of a merger with the Seoul Bank back in 2002(Here is my previous post on this case). Hana bank appealed and NTS ruled on June 6 that the merger was not a reserved merger so the bank do not need to pay the penalty. The NTS will return the 198.3 billion won Hana Bank paid Continue reading
On April 17, Seoul Central Prosecutors’ Office announced that it has started an investigation whether British American Tobacco Korea(“BAT Korea”), which has the largest shares in Korean tobacco markets, had done illegal lobbying activities in order to downscale the Seoul Regional Tax Service’s probe into its 2006 tax evasion case. Last year, Seoul Regional Tax Service discovered that BAT Korea evaded taxes on 108.2 billion won ($109.35 million) of profit and other tax evading issues come out. BAT Korea Continue reading
This morning one news article got my eyes on. The news reported that Hana Bank, one of the largest bank in Korea, is expected to be forced to pay up to 1.7 trillion won ($1.8 billion) in penalty taxes for unfair corporate income tax evasion in the course of a merger with the Seoul Bank back in 2002.
According to the news, the Ministry of Finance and Economy has ruled that the merger between Hana Bank and Seoul Bank involved illegal tax evasion. The MFE regarded the merging of two Banks as a “reversed merger”, which means a company in the red, Seoul Bank, pretends to be purchasing Hana Bank, which was in the black, when in fact it was other way round. By doing so, Hana Bank, the actual acquirer, could save corporate income taxes.
Korea’s financial authority approved the merger between Hana and then-struggling Seoul in 2002. Hana Bank is objecting to MFE’s decision. Hana bank said it completed the deal based on the government’s guidelines Hana Bank also commented Continue reading