preface

Prologue - "Tax audits of the wealthy are unavoidable."
Even if the inheritance plan is well-designed, it cannot prevent tax audits of wealthy individuals.

The National Tax Service's view of the wealthy is not simple.

What you can gain from this book

Part 1.
How does a tax audit begin and proceed?
- 'Survey' is not random, but a designed 'selection'.

Chapter 1: How Does an Inheritance and Gift Tax Investigation Begin? - The Starting Point: "Tax Data"
1.
What data does the National Tax Service collect?
2.
When and how are inheritance and gift tax data created?

Chapter 2: Inheritance and Gift Tax Investigation Process
1.
Which agency is in charge of the investigation? - Regional Tax Office Investigation Bureau vs. Tax Office Property Tax Division
2.
Not all inheritance and gift tax returns are investigated (written confirmation vs. on-site investigation)
3.
Tax Audit Flowchart: Notification, Initiation, Response, and Follow-up
4.
The Key to Inheritance and Gifts: Responding to Tax Audits

Chapter 3: Inheritance and Gifts Don't End with the Tax Investigation
1.
High-income heirs are subject to management even after investigation.
2.
Debt Post-Repayment: The Never-ending Process
3.
Overseas emigration and asset transfers by overseas Koreans are also subject to tracking.

Part 2.
How does the National Tax Service analyze allegations?
- Technology for identifying suspicious points for 'precision strikes'

Chapter 1: Inheritance Tax Investigation - Tracing the deceased's traces that even the heirs don't know about!
1.
Inheritance Tax Preparation Research - A Comprehensive Look at Life's Traces
2.
Inheritance Tax Investigation - A Net-Based Investigation to Uncover the Truth
3.
The IRS's Financial Tracking - How to See Through Your Money Flow

Chapter 2: Gift Tax Investigation - Uncovering Irregular Gifts
1.
Tracking Transactions That Are Actually Gifts But Take Other Forms: The Secret of Disguised Fund Flows
2.
Investigation and analysis of acts to lower gift tax by lowering property valuation

Chapter 3: Investigating Your Money Sources - Where Does Your Money Come From?
1.
Detecting 'Suspicious Funds': The Secrets of the National Tax Service's Analysis System and Investigation Target Selection
2.
Digging Up the "Roots of Money": The National Tax Service's Meticulous Analytical Techniques

Part 3.
Three Major Gift Tax Evasion Scenarios for the Wealthy and the National Tax Service's Tracking Methods
- Focusing on the National Tax Service press release

Chapter 1: International Transactions and the Use of Foreign Identity - The Beginning of Borderless Tracking
1.
Tax Evasion Through Foreign Nationality: Exploiting Children's Foreign Status
2.
The Whereabouts of Corporate Money Smuggled to Overseas "Ghost Companies": Using Offshore Shell Companies to Embezzle Corporate Funds
3.
Dad bequeathed an overseas apartment to a foreign corporation through tax evasion: Using a local overseas corporation as a tax evasion channel.
4.
The Suspicious Overseas Corporation That Served as My Child's "Secret Wallet": Illegal Procurement of My Child's Personal Funds
5.
The "black investment" of Gangnam's wealthy, who embezzled money through offshore insurance: Illegal donations of offshore insurance products (commonly known as "Gangnam wealthy insurance").
6.
I thought you immigrated...
Dad Secretly Giving Assets Abroad: Exploiting Immigration to Make Gifts
7.
Suspicious Foreign Exchange Inflows: Illegal Gifts Transferred to Offshore Accounts
8.
A son who used rental income on behalf of his immigrant parents: Irregular gift of domestic real estate rental income by an immigrant abroad.
9.
Identity Laundering for Children with Foreign Citizenship: Illegal Gift of Overseas Real Estate to Children Disguised as Non-Residents

Chapter 2: Donations Using Corporate Entities - The Secret Behind the Mask of a "Family Company"
1.
The chairman handed over his son's business for free: providing business opportunities and tolls to the subsidiary, and acquiring convertible bonds at a low price to secure management control.
2.
The child who hit the stock jackpot with insider information: Irregularly gifted stock listing profits.
3.
The chairman's illegal method of "giving away" the entire core business: Free transfer of core business units to subsidiary corporations and illegal succession of management rights.
4.
Dad's company even pays his son's salary: Indirect support for increasing assets of children's corporations.
5.
Parents Embezzle Company Money to Buy Their Children Luxury Cars: Tax Evasion and Illegal Leakage Using Parents' Businesses
6.
A hospital director set up a fake company and used hospital funds to buy a house: Embezzlement of hospital income to gift apartments to his children (a case of hospital MSO corporations collecting additional funds)
7.
Son Creates 'Fake Debt' at Company Using Father's Money: Illegal Gift Laundering of Father's Funds in Son's Name

Chapter 3: "Parental Chance" Illegal Gifts - Suspicious Family Transactions That Are Attracting the National Tax Service's Attention
1.
The Secret of the "Startup Fund" Given by the Building Owner: A Scheme to Fund His Child's Hospital Opening
2.
Parents Pay Off Suspicious Debt: Providing Unsecured Loans and Repaying Children's Loans
3.
The Secret of Embezzling Company Money and Buying a House in Your Child's Name: Omitting Corporate Sales and Illegal Gifts
4.
The "golden spoon" inherited the company through cheaply purchased stock: The family corporation's illegal gift of shares through a low-price paid-in capital increase.
5.
A father secretly taught his minor children how to become rich: He donated funds to gain access to confidential investment information.
6.
A doctor father regrets buying his children real estate with fake salaries: A comprehensive investigation into his children's financial resources sparks a hospital-wide investigation.
7.
The reason why you are still considered a "debtor" even after paying off all your loans: Parents conceal the fact that they have repaid their children's loans by maintaining a mortgage after paying them off.
8.
Parents who deliberately increased debt and sold the building at a low price: Charged with setting excessive loan and rental deposits, then selling the property to their children at a low price, and then repaying the debt.
9.
The Secret of Paying Off Debt with a Fake IOU: Parents and Children Create Fake IOUs and Take Over Their Children's Financial Debt

Part 4.
Inheritance tax investigation points that the wealthy are curious about and examples of cooperation between related parties in real estate tax evasion.

Chapter 1: Concealing Overseas Assets and Tracing Cross-Border Inheritances
1.
The Secret of "Black Inheritance" Hidden in Overseas Trusts: Overseas Trusts and Missing Overseas Inheritances
2.
Son Hides Father's Death: Inheritance Tax Evasion by Concealing Death of Overseas Immigrant

Chapter 2 I didn't get caught until now...
How much will be taxed during an inheritance tax investigation?
1.
The moment when money withdrawn from an account is revealed during an inheritance tax investigation: the line between living expenses and gifts.
2.
Inheritance Deduction Cheat Code? The Pitfalls of Spousal Inheritance Deduction
3.
If I withdraw my savings before I die, I pay less inheritance tax?
4.
Why IOUs Become Useless: The Difference Between "Fake Debt" and "Real Debt," According to the National Tax Service
5.
Why insurance paid on behalf of children is considered inheritance

Chapter 3: How should we respond to the National Tax Service's sword called emotional assessment?
1.
If the National Tax Service conducts an ex officio appraisal, is there any value in the taxpayer's additional appraisal? What if they conduct the appraisal in advance?
2.
Do cigars have priorities? Appraised value vs. sale price.

Chapter 4: Tax Evasion Through Real Estate Gifts Exposed Through Collaboration Between the Ministry of Land, Infrastructure and Transport and the National Tax Service - Case Report from the Ministry of Land, Infrastructure and Transport's "Real Estate Market Illegal Activity Response Team"
1.
A case of a Korean medicine clinic owner who was caught buying a house by secretly hiding cash sales: Omission of cash sales from the Korean medicine clinic and gift tax evasion on funds received from his father.
2.
The suspicious share donation from the building owner's father: Hidden irregular share registration in a newly built officetel.
3.
Money in my bank account used for housing funds and then subject to gift tax: Illegal gift of housing funds through cash roundabout deposits.
4.
Celebrity Couple's Suspicious Investment Strategies: Buying an Expensive Apartment with Spouse Money and Registering It Jointly to Avoid Gift Tax
5.
Buying real estate for grandchildren using grandmother's account: The full story of a roundabout gift: Using maternal grandmother's account to acquire real estate and gift funds illegally.
6.
"Why is there hundreds of millions of won in the bank account of a child so naive?": Illegal gifts to preschoolers.
7.
The story of how he bought real estate with a "fake salary" from his father's company and was hit with a hammer: corporation tax on fictitious expenses and irregular gift tax.
8.
The reason why you get hit with a 'transfer tax bomb' while trying to avoid gift tax with a burdened gift: Failure to report capital gains tax on burdened gift (debt)

Part 5.
An escape route for the wealthy
- Family corporations and overseas immigration, looking for new opportunities

Chapter 1: Family Corporations: A Hidden Opportunity? - Why the Wealthy Are Paying Attention
1.
Why do the rich establish 'family corporations'?
2.
There's no time to transfer assets - seize the remaining opportunity.
3.
Family Corporation Risks? Differences Between Celebrity Solo Corporations
4.
Family Corporation Tax Saving Concept Examples and Precautions

Chapter 2: Cross-Border Wealth Owners - A New Vision for Overseas Immigration and Investment
1.
People leaving for Singapore and Dubai
2.
Wealthy individuals who prefer overseas investments: US real estate investment and LLC establishment.
3.
I'm immigrating, but what if I want to leave behind a Korean building?

Epilogue - "Before Your Name Is on the IRS List"

A tax accountant from the National Tax Service and Samil Accounting Corporation explains inheritance and gift tax scenarios! Beyond simple tax savings, we analyze the National Tax Service's "taxation system" and offer risk management solutions to protect your assets.

[Features of this book]

The only book that explains the National Tax Service's inheritance and gift management system, from collecting tax data to post-investigation management mechanisms.
ㆍA book that explains actual cases of inheritance and gift detection from the perspective of a tax investigator based on National Tax Service press releases and explains risk prevention measures.
ㆍIntroduction of intelligent tax evasion cases by high-net-worth individuals that are not easily encountered in general inheritance and gift cases (tax evasion through international transactions and foreign status, gifting through the abuse of family corporations, tracking of inheritance hidden overseas, etc.)
ㆍIntroducing examples of cooperation between relevant agencies and the National Tax Service to catch real estate tax evasion.
A book that covers issues related to family corporations, overseas investment, and overseas immigration, which are currently of interest to wealthy individuals.

Part 1.
In "How Tax Investigations Begin and Flow," we introduce the data the National Tax Service collects in relation to inheritance and gift cases, the process through which investigations begin once a report is received, and the follow-up management process.

Part 2.
"How Does the National Tax Service Analyze Suspicions?" covers the National Tax Service's secret, often-unknown, attack methods, revealing how it analyzes suspicions in inheritance tax investigations, gift tax investigations, and source of funds investigations.

Part 3.
In "The Three Major Gift Tax Evasion Scenarios of the Wealthy and the National Tax Service's Tracking Methods," the author analyzes the intelligent tax evasion of high-net-worth individuals and actual investigation cases, focusing on National Tax Service press releases. From the perspective of a former investigator, the author explains how these cases were selected as subjects of analysis and at what point taxation was imposed.


Part 4.
"Inheritance tax investigation points that the wealthy are curious about and the period related to real estate tax evasion"
In "Cooperation Cases," we introduce the most frequently raised practical points by wealthy individuals during inheritance tax investigations and examples of cooperation between the National Tax Service and relevant organizations in real estate gift tax evasion investigations.


Part 5.
"The Escape Room for the Wealthy" introduces the reasons why the wealthy are recently interested in family corporations, overseas investment, and immigration, as well as the issues surrounding them.


[Topic Summary]

Understand the National Tax Service's inheritance and gift management system and investigative analysis points, and inform the wealthy about the importance of systematic gift and inheritance preparation and risk management.

Q1.
What is it about?
ㆍThe operating principles, analysis system, and key issues in the National Tax Service's tax investigation related to inheritance and gift taxation.
ㆍPress release investigation case study from an investigator's perspective
ㆍInheritance and gift tax investigation points for the wealthy
ㆍNew escape routes and responses for the wealthy

Q2.
Who should read it?
ㆍWealthy individuals considering asset inheritance in preparation for inheritance tax
ㆍWealthy individuals who want to prepare in advance for inheritance and gift tax audits
ㆍThose who are curious about issues with the tax office regarding inheritance and gifts of wealthy individuals