Korean National Tax Service Partners with Liberia to Combat Offshore Tax Evasion

Im Kwang-hyun, head of the National Tax Service, and James Dover Jallah, head of the Liberia National Tax Service, pose for a photo after signing a practical agreement on June 5. — Im Kwang-hyun, head of the National Tax Service (left), and James Dover Jallah, head of the Liberia National Tax Service, pose for a photo after signing a practical agreement on June 5. [Photo=National Tax Service]

Strengthening ties with Liberia, a prominent ship registration nation, will enhance the ability to combat illegal activities such as offshore tax evasion. The partnership also aims to alleviate challenges faced by the Korean shipping industry regarding ship registration.

The National Tax Service announced that Im Kwang-hyun, its commissioner, hosted James Dover Jallah, the head of the Liberia National Tax Service, for the first Korea-Liberia Tax Commissioner meeting in Seoul on June 5.

Liberia is known for its efficient ship registration process, which provides quick registration for shipping companies. While expressing gratitude for this, Im noted that some taxpayers might exploit Liberia's system to attempt offshore tax evasion and asset concealment.

To actively counter this, he suggested that both countries' tax authorities should engage in swift and accurate exchanges of tax information, as well as collaborate on the collection of overdue taxes. In response to Im's request for tax information sharing, Jallah assured, "We will cooperate as much as possible."

The two tax commissioners signed agreements on "cooperation for the exchange of tax-related information" and "collaboration on the collection of tax claims," committing to work diligently to achieve results, including identifying concealed assets.

Im also highlighted the challenges faced by the Korean shipping industry due to global trade uncertainties and the transition to eco-friendly practices. He requested support and attention to ensure that Korean shipping companies can focus on maritime transport without concerns during the ship registration and operation processes.

In response, Jallah promised to ensure predictability in tax administration for Korean shipping companies and to actively address their concerns.

During the meeting, both sides shared experiences regarding Korea's K-electronic tax administration and plans for digital transformation utilizing generative artificial intelligence (AI). The Liberian side requested exchanges of personnel related to electronic tax administration.

The two countries also signed a "practical agreement for capacity building" to facilitate the transfer of knowledge on K-electronic tax administration, international taxation, and information exchange.

* This article has been translated by AI.

Yujin Kim