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Laws of the Republic of Korea |
1
NATIONAL TAX COLLECTION ACT
Wholly Amended by Act No. 2680, Dec. 21, 1974
Amended by Act No. 3661, Dec. 19, 1983
Act No. 3912, Dec. 31, 1986
Act No. 4561, Jun. 11, 1993
Act No. 4673, Dec. 31, 1993
Act No. 4811, Dec. 22, 1994
Act No. 4981, Dec. 6, 1995
Act No. 5190, Dec. 30, 1996
Act No. 5371, Aug. 22, 1997
Act No. 5454, Dec. 13, 1997
Act No. 6053, Dec. 28, 1999
Act No. 6073, Dec. 31, 1999
Act No. 6805, Dec. 26, 2002
Act No. 7004, Dec. 30, 2003
Act No. 7116, Jan. 29, 2004
Act No. 7428, Mar. 31, 2005
Act No. 7931, Apr. 28, 2006
Act No. 8055, Oct. 27, 2006
Act No. 8832, Dec. 31, 2007
CHAPTER GENERAL PROVISIONS
Article 1 (Purpose)
Article 2 (Relations with Other Acts)
Article 3 (Definitions)
Article 4 (Order of Collection)
Article 5 (Submission of Certificate of Tax Payment) Article 6 (Issuance of Certificate of Tax Payment) Article 6-2 (Perusal of Delinquent National Taxes, etc.) Article 7 (Restrictions on Government-Permitted Business) Article 7-2 (Furnishing Materials on Arrearage or Disposal of Deficit) Article 7-3 (Availability of Payment Record, etc. for Disposition on Default) CHAPTER COLLECTION
SECTION 1 Collection Procedure
Article 8 (Collection Entrusted to Si/Gun)
Article 9 (Notice of Tax Payment)
Article 10 (Issuance Date of Notice for Tax Payment) Article 11 (Designation of Payment Period)
Article 12 (Payment Notice to Second Taxpayer)
NATIONAL TAX COLLECTION ACT
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Article 13 (Procedure of Tax Collection from Mortgagee) Article 14 (Collection before Payment Period)
SECTION 2 Deferment of Collection
Article 15 (Deferment of Collection)
Article 16 (Deferment of Collection and Cancellation of Taxation Due to Failure of Service Delivery)
Article 17 (Deferment of Collecting Amount, etc. of Taxes in Arrears) Article 18 (Security for Deferment of Tax Collection) Article 19 (Effect of Deferring Collection of Taxes in Arrears) Article 20 (Cancellation of Deferring Tax Collection) SECTION 3 Demand
Article 21 (Additional Dues)
Article 22 (Increased Additional Dues)
Article 23 (Demand and Peremptory Notice)
CHAPTER DISPOSITION FOR TAX IN ARREARS
SECTION 1 Procedure of Disposition for Arrears
Article 24 (Requirements for Attachment)
Article 25 (Presentation of Identification Cards) Article 26 (Searching Right and Method)
Article 27 (Right of Inquiry and Inspection)
Article 28 (Institution of Participants)
Article 29 (Attachment Report)
Article 30 (Cancellation of Fraudulent Act)
SECTION 2 Unattachable Properties
Article 31 (Unattachable Properties)
Article 32 (Conditionally Unattachable Properties) Article 33 (Restriction on Attachment on Wage Claim) Article 33-2 (Prohibition of Excessive Attachment) SECTION 3 Effect of Disposition for Arrears
Article 34 (Delivery of Attached Pledges)
Article 35 (Effect of Disposition for Arrears over Provisionally Attached or Disposed Properties)
Article 36 (Effect of Attachment on Fruits)
Article 37 (Effect of Disposition for Arrears on Inheritance or Merger) SECTION 4 Attachment of Movables and Securities
Article 38 (Procedures for Attachment of Movables and Securities) Article 39 (Enjoyment of Attached Movables)
Article 40 (Collection of Claims regarding Securities) SECTION 5 Attachment of Claims
Article 41 (Procedures for Attachment of Claims)
NATIONAL TAX COLLECTION ACT
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Article 42 (Effect of Seizing Claims)
Article 43 (Amount of Seized Claims)
Article 44 (Attachment of Continuous Income)
SECTION 6 Attachment of Real Estate, etc.
Article 45 (Procedures of Seizing Real Estate, etc.) Article 46 (Procedures of Seizing Aircraft, etc.) Article 47 (Effect of Seizing Real Estate, etc.)
Article 48 (Notification of Attachment to Mortgagee) Article 49 (Enjoyment of Attached Real Estate)
Article 50 (Third Person s Claim on Ownership)
SECTION 7 Attachment of Intangible Propert Rights, etc. Article 51 (Attachment of Intangible Property Rights, etc.) Article 52 (Attachment of National or Public Property Rights) SECTION 8 Release of Attachment
Article 53 (Requirements for Release of Attachment) Article 54 (Release of Attachment)
Article 55 (Exemption of Stamp Taxes, etc.)
SECTION 9 Request for Delivery
Article 56 (Request for Delivery)
Article 57 (Participation in Attachment)
Article 58 (Effect, etc. of Participation in Attachment) Article 59 (Application Mutatis Mutandis of Provisions concerning Release of Attachment) Article 60 (Cancellation of Request for Delivery) SECTION 10 Sale of Attached Property
Article 61 (Public Auction)
Article 62 (Optional Contract)
Article 63 (Determination of Estimated Sale Price) Article 64 (Place of Public Auction)
Article 65 (Bid Bond for Public Auction)
Article 66 (Restriction on Purchaser)
Article 67 (Method and Notice of Public Auction)
Article 68 (Public Auction Notification)
Article 69 (Notification of Cancelling Public Auction) Article 70 (Period for Notification of Public Auction) Article 71 (Suspension of Public Auction)
Article 72 (Restrictions on Participation in Public Auction) Article 73 (Bidding and Opening of Bids)
Article 73-2 (Co-owner s Right for Preferential Purchase) Article 74 (Re-auction)
Article 75 (Delivery of Notice of Decision to Sell and Time Limit for Payment of Purchase Price)
Article 76 (Peremptory Notice of Payment of Purchase Price) NATIONAL TAX COLLECTION ACT
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Article 77 (Effect of Payment of Purchase Price)
Article 78 (Cancellation of Decision to Sell)
Article 79 (Procedures for Transferring Rights on Sold Property) SECTION 11 Liquidation
Article 80 (Scope of Distribution of Money)
Article 81 (Distribution Method)
Article 82 (Distribution of Proceeds from Sale of National or Public Properties) Article 83 (Preparation of Distribution Statement) Article 84 (Deposit of Distributed Money)
SECTION 12 Write-off
Article 85 (Suspension of Disposition for Arrears and Public Notification Thereof) Article 85-2 (Deferment of Disposition for Arrears) Article 86 (Write-off)
Article 87 (Defaulted National Tax Adjustment Committee) Article 88 (Enforcement Decree)
CHAPTER GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Act is to provide necessary matters concerning the collection of national taxes to ensure the State revenue. Article 2 (Relations with Other Acts)
Matters as provided for in this Act, for which the Framework Act on National Taxes or other Acts on taxes have special provisions different therefrom, shall be subject to the conditions as prescribed by the said Acts. Article 3 (Definitions)
(1) For the purpose of this Act, the term "defaulted taxpayer" means a taxpayer who has failed to pay national taxes within the payment period, and the term "delinquent amount" means an amount including national taxes in arrears, additional dues thereof and disposition fee for arrears. (2) The definition of terms as used in this Act, except paragraph (1), shall be subject to the conditions as prescribed by the Framework Act on National Taxes.
Article 4 (Order of Collection)
The order of collection of national taxes, additional dues and disposition fee for arrears shall be as follows:
1. Disposition fee for arrears;
2. Additional dues; and
3. National taxes. NATIONAL TAX COLLECTION ACT
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Article 5 (Submission of Certificate of Tax Payment)
If a taxpayer (including a person on whom the tax has not yet been imposed;
hereafter the same shall apply in this Chapter) falls under any of the following
subparagraphs, he shall submit a certificate of
tax payment under the
conditions as prescribed by the Presidential Decree: 1. When he receives a payment from the State, local government or
government-managed institution as prescribed by the Presidential
Decree;
2. When a foreigner who is liable to pay national taxes (including those
liabilities to collect and pay; hereinafter the same shall
apply) departs
from the Republic of Korea; and
3. When a Korean emigrates or goes overseas for the purpose of staying
there over one year.
Article 6 (Issuance of Certificate of Tax Payment)
If the director of the tax office receives a request for the issuance of
certificate
of tax payment from a taxpayer, he shall promptly issue the
pertinent certificate to the taxpayer after confirming the fact.
[This
Article Wholly Amended by Act No. 5190, Dec. 30, 1996]
Article 6-2 (Perusal of Delinquent National Taxes, etc.)
(1) Any person
intending to lease and use a residential building under
Article 2 of the Housing Lease Protection Act or a business center building
under Article 2 of the Commercial Building Lease Protection Act may file
an application, with the director of tax office having
jurisdiction over the
location of buildings to be leased, for a perusal of the national taxes unpaid
by the lessor before concluding
a lease contract for the relevant buildings
by obtaining a consent of the lessor. In this case, the director of competent
tax office
shall comply with the application for perusal.
(2) The national taxes which may be perused by the lessee under paragraph
(1) shall
be limited to the delinquent national taxes of the lessor, the
national taxes whose payment dates arrive as yet after an issuance
of tax
payment notices or payment notifications, and the unpaid national taxes
from among national taxes returned within the date
of return on the tax
base and tax amount under the respective tax Act.
(3) Matters necessary for the application for perusal under
paragraph (1)
shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 6805, Dec. 26, 2002]
Article 7 (Restrictions on Government-Permitted Business)
(1) If a
taxpayer fails to pay national taxes without any justifiable reason
as prescribed by the Presidential Decree, the director of the
tax office may
NATIONAL TAX COLLECTION ACT
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request the competent authorities for business subject to permission,
authorization, license, registration, or renewal thereof (hereinafter
referred
to as "permission, etc.") not to issue such permission, etc. to the taxpayer
concerned.
(2) If a person who operates an enterprise with permission, etc. under
paragraph (1), fails to pay national taxes three or more
times, the director
of the tax office may request the competent authorities to suspend the
enterprise or cancel the pertinent permission,
etc. except for the cases
as prescribed by the Presidential Decree.
(3) If the director of the tax office collects national taxes after a request
under paragraph (1) or (2) is made, he shall withdraw
the said request
without delay.
(4) If the director of the tax office makes the request under paragraph
(1) or (2), the competent authorities shall comply with
such request, unless
there are any justifiable reasons.
Article 7-2 (Furnishing Materials on Arrearage or Disposal of Deficit)
(1) If a credit information business operator or a credit
information
collection agency under Article 2 of the Use and Protection of Credit
Information Act or other persons as prescribed
by the Presidential Decree
request materials on personal data, amount in arrears, or amount of disposal
of deficit (hereinafter
referred to as "materials on arrearage or disposal
of deficit") related to a defaulter or person in disposal of deficit who falls
under any of the following subparagraphs and their request is necessary
for the collection of national tax or public interest,
the director of the tax
office may furnish such materials: Provided, That in case where a request
for objection, request for examination,
or request for judgment pursuant
to the Framework Act on National Taxes and the administrative litigation
are pending in relation
to the national taxes in arrears or in other cases
as prescribed by the Presidential Decree, the same shall not apply:
1. A person who has been in arrears with the payment for 1 year and
the amount in arrears is larger than that as prescribed by the
Presidential
Decree;
2. A person who has been in arrears with the payment 3 or more times
in 1 year and the amount in arrears is larger than that as prescribed
by the Presidential Decree; and
3. A person who has the tax amount that was written off as deficits in
excess of the amount as prescribed by the Presidential Decree.
NATIONAL TAX COLLECTION ACT
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(2) The matters necessary for the procedure of furnishing materials on
arrearage or disposal of deficit, etc. under the provisions
of paragraph (1)
shall be prescribed by the Presidential Decree.
(3) A person who is furnished with materials on arrearage or disposal of
deficit under the provisions of paragraph (1) shall not
disclose them or
use them out of the designated purposes.
[This Article Newly Inserted by Act No. 5190, Dec. 30, 1996]
Article 7-3 (Availability of Payment Record, etc. for Disposition on
Default)
The director of the tax office (including the Commissioner of the Regional
Tax Service and the Commissioner of the National
Tax Service) may make
the payment record, etc. on interest income or dividend income and other
information on financial transactions,
which are provided under Article
164 of the Income Tax Act and Article 120 of the Corporate Tax Act,
available for the disposition
on default including inquiry into the defaulted
taxpayer' property, notwithstanding Article 4 (4) of the Act on Real Name
Financial
Transactions and Guarantee of Secrecy.
[This Article Newly Inserted by Act No. 7116, Jan. 29, 2004]
CHAPTER COLLECTION
SECTION 1 Collection Procedure
Article 8 (Collection Entrusted to Si/Gun)
(1) The director of the tax office may entrust the head of Si (in case of
the Special Metropolitan City and other Metropolitan Cities,
head of
Gu/Gun; hereinafter the same shall apply) or head of Gun with the collection
of national taxes within his jurisdictional
area under the conditions as
prescribed by the Presidential Decree. In this case, the head of Si/Gun
shall collect such national
taxes and pay them to the national treasury.
Article 9 (Notice of Tax Payment)
(1) If the director of the tax office or the head of Si/Gun intends to collect
national taxes, he shall issue to the taxpayer a
notice specifying the taxable
year, tax item, tax amount, basis of calculation, payment period and payment
place of the said national
taxes.
8
additional dues thereof, if the director of the tax office intends to collect
the disposition fee for arrears, he shall issue a
notice to the taxpayer
in such manner as prescribed by the Presidential Decree.
Article 10 (Issuance Date of Notice for Tax Payment)
The notice of tax payment and the notification of tax amount shall be issued
at the time as specified in the following subparagraphs:
1. In case where the tax payment period is fixed, 5 days before the starting
date of the period for the notice of tax payment, and
15 days before
the starting date of the period for the notification of tax amount;
2. In case where the tax payment period is not fixed, immediately after
deciding the collection; and
3. In case where the tax collection is deferred for a certain period of time
according to the Acts on taxes, the day following the
expiry date of
the period.
Article 11 (Designation of Payment Period)
The director of the tax office may designate the payment period (excluding
the cases prescribed by the Acts on taxes) of national
taxes (including
the disposition fee for arrears) within 30 days from the date of the notice
of tax payment, payment, or paying-in.
[This Article Wholly Amended by Act No. 5190, Dec. 30, 1996]
Article 12 (Payment Notice to Second Taxpayer)
If the director of the tax office intends to collect national taxes, additional
dues, or a disposition fee for arrears of a certain
taxpayer from the taxpayer
with the secondary liability (including the tax guarantor; hereinafter the same
shall apply), he shall
notify the latter with a notice of payment stating the
taxable year, tax item, tax amount, basis of calculation, payment period,
payment place of national taxes, additional dues or disposition fee for
arrears to be collected, the amount to be collected from
the taxpayer with
the secondary liability, and the basis of its calculation and other necessary
matters. In this case, he shall
notify the taxpayer of the said purport.
(2) In case where an obligation mortgaged by the method of transfer of
NATIONAL TAX COLLECTION ACT
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the pertinent property is extinguished due to reasons other than default
of obligation or other performance(including the case where
a contract
concluded on the basis of repurchase of mortgaged property, reservation
of resale or other method similar thereto is
invalidated due to reasons
other than lapse of time limit or performance of the said contract) after
the notice under paragraph
(1) is made, the mortgaged property shall be
considered still existing.
Article 14 (Collection before Payment Period)
(1) The director of the tax office may collect the determined national tax
from the taxpayer even before the payment period, if
the duty falls under
any of the following subparagraphs: 1. Where the taxpayer is subject to a disposition for arrears due to
delinquency of national taxes;
2. Where the taxpayer is subject to a disposition for arrears due to
delinquency of local taxes or public charges;
3. Where the taxpayer is subject to a compulsory execution;
4. Where the taxpayer has been subject to a disposition of transaction
suspension by the clearing house pursuant to the Bills of
Exchange
and Promissory Notes Act and the Check Act;
5. Where an auction has started;
6. Where the juristic person is dissolved;
7. Where it is deemed that there is an attempt to evade national taxes;
and
8. If the taxpayer has neither a domicile or temporary domicile nor a
tax manager in Korea.
(2) If the director of the tax office collects national taxes before the period
of tax payment under paragraph (1), he shall notify
the taxpayer of the
designated period of payment. In this case, if a notification of the tax payment
was already issued, he shall
notify the taxpayer of the changed period
of payment.
SECTION 2 Deferment of Collection
Article 15 (Deferment of Collection)
(1) If the director of the tax office deems before the commencement of
payment period that it is impossible for a taxpayer to pay
national taxes
due to any of the following reasons, he may defer a notification of the
tax payment or notify the taxpayer of the
installment payment of the de-
termined tax amount under the conditions as prescribed by the Presidential
NATIONAL TAX COLLECTION
ACT
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Decree:
1. If a great damage or loss has inflicted on the taxpayer's properties
due to theft or disasters;
2. If a conspicuous damage or loss has inflicted on the taxpayer's business;
3. If the taxpayer's business is in serious crisis;
4. If the taxpayer or his dependants have to receive long term medical
treatment because of serious injuries or diseases;
5. Where a procedure for a mutual agreement is in progress with the
competent authorities of a foreign country under a treaty concluded
for the prevention of double taxation: Provided, That this case shall
be subject to the special case of deferment of collection
as provided
for in Article 24 (2), (4) and (6) of the Adjustment of International
Taxes Act; and
6. If there are similar reasons to those as provided for in subparagraphs
1 through 4.
(2) If the taxpayer desires to obtain a deferment of notification or a notifica-
tion of the installment payment of tax amount under
paragraph (1), he
may file an application with the director of the tax office under the con-
ditions as prescribed by the Presidential
Decree.
(3) If the director of the tax office defers a notification of the tax payment
or notifies the installment payment of the
tax amount, under paragraph
(1), he shall give the notice to the applicant under the conditions as pre-
scribed by the Presidential
Decree.
Article 16 (Deferment of Collection and Cancellation of Taxation Due to
Failure of Service Delivery)
(1) The director of the tax office may defer the tax collection, in case
where the notice of tax payment can not be served due to
obscurity of
domicile, temporary domicile, business place, or office (hereinafter referred
to as "domicile or business place").
(2) If the director of the tax office deems that it is impossible to ensure
the collection of national taxes deferred under paragraph
(1), he may cancel
the decision of charging such national taxes.
(3) If the director of the tax office finds the property or whereabouts of
the taxpayer after deferring the tax collection pursuant
to paragraph (1),
or cancelling the levy of national taxes pursuant to paragraph (2), such
director shall immediately take the
procedures for imposing or collecting
the national taxes.
Article 17 (Deferment of Collecting Amount, etc. of Taxes in Arrears)
(1) After notifying or urging the tax payment, if the director
of the tax
NATIONAL TAX COLLECTION ACT
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office recognizes that the taxpayer can not pay the national taxes or
delinquent amount notified within the time limit for payment
for the reason
falling under any subparagraphs of Article 15 (1), he may defer the tax
collection for a certain period under the
conditions as prescribed by the
Presidential Decree: Provided, That if a procedure for mutual agreement
is in progress with the
competent authorities of a foreign country under
the treaty concluded for the prevention of double taxation, it shall be subject
to the special case, such as deferment of collection, etc., as provided for
in Article 24 (3) through (6) of the Adjustment of
International Taxes
Act.
Article 18 (Security for Deferment of Tax Collection)
If the director of the tax office defers the tax collection under Article
15
or 17, he may request the taxpayer to provide a security for tax payment
corresponding to the amount relating to the deferment.
Article 19 (Effect of Deferring Collection of Taxes in Arrears)
(1) If the director of the tax office has deferred the national
tax collection
before the time limit for payment notified to the taxpayer under Article
17, he shall not impose the additional
dues as provided for in Article 21
until the period of deferment expires.
(4) If the collection of national taxes or delinquent amount is deferred
under Article 140 of the Debtor Rehabilitation and Bankruptcy
Act before
the time limit for payment of the national taxes or delinquent amount,
but after the taxpayer has received the notice
of tax payment or the demand
of tax payment, the provisions of paragraphs (1) and (2) shall apply in
collecting the additional
dues.
12
applicable.
1. If he does not pay national taxes and delinquent amount by the designated
time limit;
2. If he does not comply with the instruction of the director of the tax
office concerning the change or preservation of the security;
3. If it is deemed that the deferment is no longer needed because of a
change in the taxpayer's properties or other situation; and
4. If it is deemed that the total amount of the deferred national taxes
or delinquent amount are not to be collected up to the deferred
time
limit because it falls under Article 14 (1) 2 through 8.
(2) If the director of the tax office cancels the deferment of tax
collection
under paragraph (1), he shall notify the taxpayer of such fact.
SECTION 3 Demand
Article 21 (Additional Dues)
If the total amount of national tax is not paid on or before the date prescribed
for payment of such tax, any additional dues shall
be collected at the rate
of 3/100 of the defaulted amount of national tax from the date following
the date prescribed for payment
of such tax: Provided, That this shall
not apply to the State and local governments (including the association
of local governments).
Article 22 (Increased Additional Dues)
(1) If the defaulted national taxes are not paid, another additional dues
(hereafter referred to as "increased additional dues"
in this Article) shall
be collected at the rate of 12/1,000 of the defaulted national tax amount
for each month following the date
prescribed for payment of such tax, in
addition to the additional dues as provided for in Article 21. In this case,
the period
in which the increased additional dues are collected may not
exceed sixty months.
(2) The provisions of paragraph (1) shall not apply if the delinquent amount
of national tax imposed by payment notice or by tax
item is less than
1 million won.
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(3) The provisions of the proviso to Article 21 shall apply mutatis mutandis
to the case as provided for in paragraph (1).
(4) In case where the collection of delinquent amount is deferred because
the procedure for mutual agreement with the competent
authorities of
the foreign country is in progress, the provisions of paragraph (1) shall
not be applied, but the special case on
the additional dues as provided
for in Article 24 (5) of the Adjustment of International Taxes Act shall
apply.
(1) In cases where national taxes are not paid completely by the time
limit for payment, the director of the tax office or the head
of Si/Gun
shall issue a notice of demand for the payment to the taxpayer within
fifteen days after the time limit for tax payment
expires: Provided, That
this provision shall not be applicable to the collection of national taxes
under Article 14, or to the
delinquent amount that is less than the amount
prescribed by the Presidential Decree.
(2) The director of the tax office shall issue a peremptory notice to the
taxpayer with the secondary liability within fifteen days,
if the delinquent
amount has not been paid completely by the time limit for payment: Provided,
That this shall not apply in cases
where the delinquent amount that the
taxpayer with the secondary liability has to pay is less than the amount
prescribed by the
Presidential Decree.
(3) When issuing a notice of demand for the payment or a peremptory
notice, the time limit for payment shall be less than ten days
from the
date of issue.
CHAPTER DISPOSITION FOR TAX IN
ARREARS
SECTION 1 Procedure of Disposition for Arrears
Article 24 (Requirements for Attachment)
(1) Any tax officials shall seize the taxpayer's properties in cases falling
under any of the following subparagraphs:
1. If the taxpayer does not pay completely national taxes and the additional
dues by the designated period after receiving a notice
of demand
(including a peremptory notice; hereinafter the same shall apply); and
2. If the taxpayer fails to pay completely the tax by the designated period
NATIONAL TAX COLLECTION ACT
14
after receiving a notice of tax payment before the period of the tax
payment under Article 14 (1).
(2) If the director of the tax office deems that he cannot collect from a
taxpayer national taxes after the determination of national
taxes due to
a cause falling under any subparagraphs of Article 14 (1), he may seize
the taxpayer's properties to the extent of
the estimated amount of national
taxes.
(3) The director of the tax office shall obtain approval from the director
of a regional tax service before seizing the properties
under paragraph
(2).
(4) The director of the tax office shall make a notification to the taxpayer
in writing after seizing the properties under paragraph
(2).
(5) The director of the tax office shall clear without delay the seizure of
the properties effected under paragraph (2) in
case falling under any of
the following subparagraphs:
1. When the taxpayer who received the notification under paragraph (4)
requests the clearance of the seizure after providing security
for tax
payment; and
2. When the amount of national taxes to be collected by the seizure is
not determined until three months have passed after the date
of the
seizure.
(6) Where any properties seized under paragraph (2) are money, deposits
collectible within the period for payment, or securities,
the director of the
competent tax office may appropriate them to the fixed national taxes when
the taxpayer files an application
therefor.
[This Article Wholly Amended by Act No. 3661, Dec. 19, 1983]
Article 25 (Presentation of Identification Cards)
In case where tax
officials conducts inquiry, inspection or search, or seize
properties to take the disposition for arrears, they shall carry their
identi-
fication cards with them to present them to the persons concerned.
Article 26 (Searching Right and Method)
(1) If it is necessary for seizing property, the tax officials may search the
defaulted taxpayer's house, vessel, warehouse and
other places, and open
or make open any closed doors, safes, or equipment possessed by the de-
faulted taxpayer. This is also applicable
to a case where a third person
who possesses the defaulted taxpayer's properties refuses to deliver the
properties.
(2) The provisions of paragraph (1) shall apply mutatis mutandis to the
case of suspecting that the defaulted taxpayer's properties
are hidden in
NATIONAL TAX COLLECTION ACT
15
a third person's house, vessel, warehouse, and other places.
(3) Searching as provided for in paragraph (1) or (2), shall be limited
within the time from sunrise to sunset: Provided, That when it starts before
sunset, it may be continued even after sunset.
(4) A place in which a business as prescribed by the Presidential Decree
is operated chiefly during night, may be searched after
sunset while in
operation, notwithstanding the provisions of paragraph (3).
(5) If the tax officials find no properties attachable
under paragraph (1)
or (2), they shall prepare a search report to be signed by them together
with signature and seal of the defaulted
taxpayer or participants under
Article 28.
(6) When the tax officials prepare for a search report under paragraph
(5), they shall deliver a copy of the report to the delinquent
taxpayer
searched or any other participants searched.
Article 27 (Right of Inquiry and Inspection)
If the tax officials desire to know the location and quantity of the attachable
properties in executing the disposition for arrears,
they may inspect files,
documents and other items or inquire those persons who fall under any
of the following subparagraphs:
1. Defaulted taxpayer;
2. Person having any transactions with the defaulted taxpayer;
3. Person occupying the defaulted taxpayer's properties;
4. Creditor or obligor of the defaulted taxpayer;
5. Juristic person of which partner or stockholder is defaulted taxpayer;
and
6. Partners or stockholders of a juristic person which is the defaulted
taxpayer.
Article 28 (Institution of Participants)
(1) When a tax official makes search or inspection under Article 26 or
27, he shall have the person subject to the search or inspection,
his family,
person living together with him, clerk, or other employee participate in
it as a witness.
(2) In a case as provided for in paragraph (1), if there is no participant,
or nobody responds to the participation, the tax officials
shall make police
officials, the officials of Seoul Special Metropolitan City, Metropolitan
Cities, Si/Gun, or two or more majors
participate as witnesses.
The tax officials shall prepare an attachment report in case where they
seize the defaulted taxpayer's properties. In this case,
the tax officials
shall give a copy of the report to the defaulted taxpayer in case where
NATIONAL TAX COLLECTION ACT
16
the seized properties fall under any of the following subparagraphs:
1. Movables or securities;
2. Claims; and
3. Rights of properties other than claims and ownerships (hereinafter
referred to as "intangible property rights, etc.").
Article
30 (Cancellation of Fraudulent Act)
Where any defaulted taxpayer performs a legal act for the purpose of property
right in order to be exempted from any collection
of national taxes, the
tax officials may, in executing any disposition on default, request the court
to revoke his fraudulent act
by applying mutatis mutandis the provisions
of Articles 406 and 407 the Civil Act.
Article 31 (Unattachable Properties)
Properties in the following subparagraphs shall be unattachable: 1. Daily necessities for a defaulted taxpayer and his dependants such
as clothes, bedding, furniture, and kitchen instruments;
2. Food and fuel needed for a defaulted taxpayer and his dependants
for three months;
3. Seals and stamps needed for a defaulted taxpayer's occupation;
4. Articles necessary for religious rites or worship, stone monuments and
graveyards;
5. Articles needed for mourning occasion or funeral ceremony of a defaulted
taxpayer and his dependants;
6. Genealogical table and other books and documents necessary for a
defaulted taxpayer's home;
7. Uniforms and vestment needed for a defaulted taxpayer's occupation;
8. Medals and vouchers of honor;
9. Books and equipment needed for education of a defaulted taxpayer
and his dependants;
10. Unpublished works or inventive items;
11. Allowances for death and injuries as paid pursuant to Acts and sub-
ordinate statutes;
12. Equipment, drugs, and other materials for the medical, midwifery,
veterinary business; and
13. Small financial property necessary to support the living of a defaulted
NATIONAL TAX COLLECTION ACT
17
taxpayer as prescribed by the Presidential Decree.
Article 32 (Conditionally Unattachable Properties)
The following properties
may not be attached, if a defaulted taxpayer pro-
vides other properties enough to pay national taxes, additional dues and
disposition
fee for arrears:
1. Agricultural tools and equipment, livestock, feed, seeds, and fertilizers;
2. Fishing boats, nets, and equipment; and
3. Machines, tools, and equipment needed for his business or occupation.
Article 33 (Restriction on Attachment on Wage Claim)
(1)
A half of the total amount of wage, pension, pay, salary, bonus, annual
allowance, retirement annuity or other wage claim similar
thereto shall
be unattachable: Provided, That where the amount falls short of the amount
prescribed by the Presidential Decree
in consideration of the minimum
cost of living pursuant to the National Basic Living Security Act, or exceeds
the amount prescribed
by the Presidential Decree in consideration of the
cost of living of standard households, it shall be according to the amount
prescribed
by the Presidential Decree respectively.
(2) A half of the total amount of retirement allowance or other wage claim
similar thereto shall be unattachable.
[This Article Wholly Amended by Act No. 7931, Apr. 28, 2006]
Article 33-2 (Prohibition of Excessive Attachment)
The director of
the tax office may not attach properties other than those
necessary for collecting national taxes.
[This Article Newly Inserted by Act No. 5190, Dec. 30, 1996]
SECTION 3 Effect of Disposition for Arrears
Article 34 (Delivery of Attached Pledges)
If the tax officials desire to attach the pledged properties, the pledgee
shall deliver the pledge to them regardless of the time
of the establishment
of the pledge.
Article 35 (Effect of Disposition for Arrears over Provisionally Attached
or Disposed Properties)
The disposition for arrears shall not be adversely affected by the provisional
attachment or disposal by the court.
Article 36 (Effect of Attachment on Fruits)
The attachment shall be binding on natural or legal fruits produced from
the attached property: Provided, That it shall not be effective
on those
natural fruits produced from the property which a defaulted taxpayer or
a third person uses or takes profits from (excluding
the natural fruits not
NATIONAL TAX COLLECTION ACT
18
received until the time of transferring its ownership due to the sale of
the property).
Article 37 (Effect of Disposition for Arrears on Inheritance or Merger)
(1) Even when a defaulted taxpayer dies or a juristic person
who is a defaulted
taxpayer is dissolved by merger, after a disposition for arrears is taken
against the property of the defaulted
taxpayer, such disposition for arrears
shall continue to proceed.
(2) The attachment against the property owned by a defaulted taxpayer,
effectuated after his death, shall be deemed to be done against
his inheritor.
SECTION 4 Attachment of Movables and Securities
Article 38 (Procedures for Attachment of Movables and Securities)
The tax officials shall take possession of movables and securities
to be
attached: Provided, That the properties which are difficult to carry may
be put under the custody of the head of Si/Gun,
a defaulted taxpayer,
or a third person. In this case, the attachment shall be marked by sealing
the property or by other means.
Article 39 (Enjoyment of Attached Movables)
In case where the attached movables are put under the custody of a defaulted
taxpayer or a third person who is entitled to enjoy
them under the proviso
to Article 38, the director of the tax office may permit him to enjoy them,
except for those cases deemed
to hinder the collection of national taxes.
Article 40 (Collection of Claims regarding Securities)
(1) In seizing securities, the
director of the tax office may collect monetary
claims related to such securities.
(2) If the monetary claims are collected under paragraph (1), the delinquent
amount relating to seizure for the defaulted taxpayer
shall be considered
to be collected by the director of the tax office within the limit of such
monetary claims.
SECTION 5 Attachment of Claims
Article 41 (Procedures for Attachment of Claims)
(1) In seizing claims, the director of the tax office shall notify it to the
obligor of the relevant claim (hereinafter referred
to as the "third obligor").
(2) Upon notification as referred to in paragraph (1), the director of the
tax office shall subrogate the obligee who is a defaulted
taxpayer within
the amount of the national taxes, additional dues and disposition fee for
NATIONAL TAX COLLECTION ACT
19
arrears.
Article 42 (Effect of Seizing Claims)
Attachment of claims shall enter into force upon delivery of the notification
of attachment to the third obligor.
The director of the tax office shall seize claims within the amount of national
taxes, additional dues, and disposition fee for
arrears: Provided, That he
may seize the total amount of claims, if it is deemed necessary to seize
the claims exceeding the amount
of national taxes, additional dues, and
disposition fee for arrears.
Article 44 (Attachment of Continuous Income)
Attachment of pay, wage, salary, annual allowance, retirement annuity
and other similar claims shall affect the income earned after
the attachment
to the extent of the amount of national taxes, additional dues, and disposition
fee for arrears.
SECTION 6 Attachment of Real Estate, etc.
Article 45 (Procedures of Seizing Real Estate, etc.)
(1) In seizing real estates, vessels, factory foundations, or mining founda-
tions, the director of the tax office shall request the competent registry
office of its attachment registration. The same procedures
shall be taken
for registration of its modification.
(2) In dividing or partitioning real estates, factory foundations, or mining
foundations in order to attach them, the director of
the tax office shall
request the competent registry office to make registration therefor. The
same procedures shall be taken for
registration of its modification or merger.
(3) In seizing unregistered real estate, the director of the tax office shall
request
the competent registry office to make preservation registration
with a copy of its cadaster or tenement register.
(4) The provisions
of Article 41 (3) shall apply mutatis mutandis to the
attachment under paragraph (1) or (3).
Article 46 (Procedures of Seizing Aircraft, etc.)
(1) If the director of the tax office attaches airplanes or helicopters
(hereinafter
referred to as "aircraft") registered under the Aviation Act,
construction machines registered under the Construction Machinery
NATIONAL TAX COLLECTION ACT
20
Management Act, or motor vehicles registered under the Automobile
Management Act, he shall request the government agencies concerned
of
the seizing registration. The same procedures shall be taken for registration
of its modification.
(2) In seizing vehicles or construction machines under paragraph (1), the
chief of the tax office may order the defaulted taxpayer
to deliver them to
the office, and he may possess them.
Article 47 (Effect of Seizing Real Estate, etc.)
(1) The attachment under Article 45 or 46 shall enter into force upon
completion of its registration or register.
(2) The attachment as provided for in paragraph (1) shall also have its
effect on any arrears of the national taxes the legal due
date of which comes
before the ownership of such attached property is transferred under Article
35 (1) of the Framework Act on
National Taxes.
Article 48 (Notification of Attachment to Mortgagee)
(1) If the director of the tax office attaches the pledged, leased or mortgaged
properties, he shall notify it to the creditors.
(2) If the creditor who has priority to the national taxes desires to exercise
his right after receiving the notification as provided
for in paragraph (1),
he shall declare his intention to the director of the tax office within ten
days from the date of receiving
the notification.
Article 49 (Enjoyment of Attached Real Estate)
(1) The defaulted taxpayer may enjoy the attached real estate, factory
foundation, mining foundation, vessels, aircraft, construction
machines
or vehicles: Provided, That the director of the tax office may restrict the
enjoyment if he recognizes that the use may
cause a conspicuous decrease
of their values.
21
(3) While executing the disposition for arrears, the director of the tax
office may make vessels, aircraft, construction machines,
or vehicles
temporarily anchor or stop to operate when it is deemed to be necessary:
Provided, That this shall not apply to those
vessels or aircraft which are
completely ready to start.
Article 50 (Third Person s Claim on Ownership)
The third person who desires to get back the attached property by claiming
its ownership, shall submit those documents proving the
ownership to the
director of the tax office at least five days before its sale.
SECTION 7 Attachment of Intangible Propert Rights,
etc.
Article 51 (Attachment of Intangible Property Rights, etc.)
(1) In seizing intangible property rights, the director of the tax office
shall
notify it to the owner.
(2) If the transfer of the attached intangible property rights requires its
registration or register, the director of the tax office
shall entrust the
registration or register of the seizure to the government agencies concerned.
The same procedures shall be taken
for registration or register of its
modification.
(3) The provisions of Article 41 (3) shall apply mutatis mutandis to the
attachment under paragraph (2).
Article 52 (Attachment of National or Public Property Rights)
(1) When the defaulted taxpayer has purchased national or public
property, his property rights may be attached even before transferring
the ownership.
(2) The provisions of Article 41 (3) shall apply mutatis mutandis to the
attachment under paragraph (1).
(3) In selling the attached property as provided for in paragraph (1), if
a purchaser completely pays its price, he shall succeed
to all of the defaulted
taxpayer's rights and duties concerning property to the Government or
public organizations.
NATIONAL TAX COLLECTION ACT
22
SECTION 8 Release of Attachment
Article 53 (Requirements for Release of Attachment)
(1) The director of the tax office shall immediately release the attachment
in cases falling under any of the following subparagraphs:
1. If the attachment is no longer needed because of payment, appropriation,
suspension of public auction, cancellation of the imposition,
and other
reasons;
2. If the justification for the third person's claim on the ownership under
Article 50 is deemed to be reasonable; and
3. If the third person proves that he has obtained a favorable judgment
of the court in the lawsuit on the ownership against the
defaulted
taxpayer.
(2) The director of the tax office may release the attachment of property
partially or totally in cases falling under any of the
following subparagraphs:
1. If the price of the property conspicuously exceeds the total amount
of the delinquent amount due to the change of price and other
reasons
after the attachment;
2. If the delinquent amount related to the attachment is partially paid
or appropriated;
3. If the imposition is partially cancelled; and
4. If other attachable properties are provided by the defaulted taxpayer.
Article 54 (Release of Attachment)
(1) If the director of the tax office releases the attachment of property,
he shall notify its owner, third obligor, or a third
person to whom the
attachment was notified of such release.
(2) If the attachment was already registered pursuant to paragraph (1),
the director of the tax office shall request the government
agency concerned
to cancel such registration by submitting a record of attachment release.
(3) If the director of the tax office
releases the attachment of property
which has been under custody of a third person, he shall notify the custodian
of such release
and return the property back to the defaulted taxpayer
or the rightful owner. In this case, if he has received a certificate of
deposit, such certificate shall be returned.
NATIONAL TAX COLLECTION ACT
23
(4) If it is deemed necessary for the case of paragraph (3), the director
of the tax office may ask the custodian to deliver the
property, if it is
deemed necessary. In this case, he shall notify the defaulted taxpayer or
the rightful owner to receive the
attached property from the custodian.
(5) In returning property under custody, the director of the tax office shall
obtain a receipt.
Instead of the receipt, he may describe the receipt in
the attachment report and make the person concerned sign and seal on
it.
Article 55 (Exemption of Stamp Taxes, etc.)
(1) Documents to be provided for custody of the attached property shall
be exempted from stamp taxes.
(2) Registration or register of the attachment or release of the attachment
shall be exempted from registration taxes.
SECTION 9 Request for Delivery
Article 56 (Request for Delivery)
If any of the provisions of Article 14 (1) 1 through 6 occurs, the director
of the tax office shall request the relevant government
agency, public organ-
ization, executing court, enforcing officer, compulsory administrator, bank-
ruptcy trustee, or liquidator
to deliver the national taxes, additional dues
and disposition fee for arrears.
Article 57 (Participation in Attachment)
(1) If the property to be attached is under the attachment of another agency,
the director of the tax office may participate in
the attachment by serving
a notice of participation in attachment on the agency which has already
attached the property (hereinafter
referred to as "agency having already
attached") in place of request for share distribution under Article 56.
(2) In participating
in the attachment under paragraph (1), the director
of the tax office shall notify the defaulted taxpayer and the third person
who has the right on the property of such purport.
(3) If the property for which the director of the tax office desires to partic-
ipate in an attachment under paragraph (1), is required to be registered
in change of right, he shall entrust registration or register
of such partic-
ipation in attachment to the government agency concerned.
Article 58 (Effect, etc. of Participation in Attachment)
NATIONAL TAX COLLECTION ACT
24
(1) If the agency having already attached property, releases the attachment
after the participation in the attachment under Article
57, the participation
in the attachment (in case of two or more participations in the attachment
for property falling under Article
57 (3), the participation first registered,
and in case of two or more participations in the attachment for other property,
the
participation for which the notice of participation in attachment has
first been served) shall retroactively have the effect of
attachment as follows:
1. With respect to property other than that falling under Article 57 (3),
when the notice of participation in attachment is served
on the agency
having already attached the property; and
2. With respect to property falling under Article 57 (3), when the registra-
tion or register of participation in attachment is completed.
(2) If the agency having already attached the property releases the attach-
ment, it shall issue a notice on the release to the
director of the tax office
who has participated in the attachment, along with the list of property.
In this case, if the agency
has occupied or made the third person keep
the movables or securities to be released, those properties shall be handed
over directly
to the director of the tax office who has participated in the
attachment: Provided, That in case where the properties are under
the
custody of the third person, the custody certificate issued by the third
person may be handed over to the director of the tax
office instead of
handing over the properties.
(3) The director of the tax office who has participated in the attachment
may urge the agency which has already attached the property
to sell it,
when the agency has not sold the attached property for a long time.
Article 59 (Application Mutatis Mutandis of Provisions concerning Release
of Attachment)
The provisions of Articles 53 through 55 shall apply mutatis mutandis
to the cancellation of participation in the attachment.
Article 60 (Cancellation of Request for Delivery)
(1) The director of the tax office shall cancel the request for delivery when
the taxpayer's obligation to pay national taxes, additional dues, and dis-
position fee for arrears is extinguished because of
the payment, appropria-
tion, cancellation of the imposition, or for other reasons.
NATIONAL TAX COLLECTION ACT
25
(2) The cancellation of the request for delivery under paragraph (1) shall
take effect when the agency which has been requested
the delivery is notified
of such fact.
SECTION 10 Sale of Attached Property
Article 61 (Public Auction)
(1) The director of the tax office shall put up for a public auction those
attached movables, securities, real estates, intangible
properties and those
items (excluding currency) received on behalf of defaulted taxpayer under
Article 41 (2) under the conditions
as prescribed by the Presidential Decree:
Provided, That the director of the tax office may have the Korea Asset
Management Corporation
organized under the Act on the Efficient Disposal
of Non-Performing Assets, etc. of Financial Institutions and the
Establishment
of Korea Asset Management Corporation (hereinafter re-
ferred to as the "Korea Assets Management Corporation") conduct the
auction
on behalf of the tax office under the conditions as prescribed by
the Presidential Decree, when the director of the tax office deems
that
the attached properties are not suitable for public auction by himself because
special knowledge is required for their sales
or there are other special
circumstances. In this case, the public auction shall be considered to be
conducted by the director
of the tax office.
(2) Notwithstanding the provisions of the main sentence of paragraph
(1), the head of the tax office may sell directly in the relevant
market
the stocks listed in the securities market or in the KOSDAQ market pursuant
to the Korea Securities and Futures Exchange
Act from among the securities
pursuant to the Securities and Exchange Act that have been attached.
(3) Those properties attached under Article 24 (2) may not be put up
for a public auction before determining the obligation to pay
the national
taxes related to the attachment.
(4) The properties attached for reasons of delinquency in payment of the
national taxes for which an objection, request for review
or decision is
pending under the Framework Act on National Taxes, shall not be put
up for a public auction before a decision on
such objection or request is
determined definitely: Provided, That the forgoing shall not apply to the
NATIONAL TAX COLLECTION
ACT
26
properties falling under Article 62 (1) 2.
(5) Where the Korea Asset Management Corporation conducts the public
auction of the attached property by proxy under the proviso
to paragraph
(1), the "director of the tax office" shall be considered as the "Korea Asset
Management Corporation"; "tax officials"
as the "staff (including the
director; hereinafter the same shall apply) of the Korea Asset Management
Corporation"; the "public
officials who take the public auction procedure"
as the "staff of the Korea Asset Management Corporation who conducts
the public
auction by proxy"; and the "tax office" as the "head office or
branch office of the Korea Asset Management Corporation", respectively
in this section.
(6) Where the Korea Assets Management Corporation conducts the public
auction by proxy under the proviso to paragraph (1), the director
of the
tax office may pay fees to the Korea Assets Management Corporation under
the conditions as prescribed in the Presidential
Decree.
(1) Where the attached property falls under any of the following subpara-
graphs, it may be sold by an optional contract:
1. If the sale price can only cover the disposition fee for arrears and
there is no room for the balance to occur, when the sale
is done by
ways other than an optional contract;
2. If the property must be sold promptly because its value decreases due
to its septic or degenerative nature or loss;
3. If the estimated price of the attached property is less than ten million
NATIONAL TAX COLLECTION ACT
27
won;
4. If the Acts and subordinate statutes restrict the sale or possession
of the property;
5. If the property can not be sold through the public auction over five
times for a year after the first public auction; and
6. If the public auction is not proper for the public benefits.
(2) The director of the tax office may, if necessary, have the Korea
Asset
Management Corporation perform by proxy the optional contract as referred
to in paragraph (1) under the conditions as prescribed
by the Presidential
Decree. In this case, the optional contract shall be considered to have
been done by the director of the tax
office, and the provisions of Article
61 (5) through (8) shall be applicable mutatis mutandis to the optional
contract.
(2) When it is difficult for the director of the tax office to determine the
estimated sale price, he may determine the value thereof
by requesting
an appraiser to evaluate it under the conditions as prescribed by the
Presidential Decree.
Article 64 (Place of Public Auction)
A public auction shall be held at a regional tax service, a tax office, a
customs house, Si/Gun where the property is located: Provided,
That the
director of the tax office may assign another place for public auction, if
it is deemed necessary.
Article 65 (Bid Bond for Public Auction)
(1) In selling the attached property, the director of the tax office may
receive bid bond or contract deposit, if it is deemed necessary.
(2) The amount of the bid bond shall be 10/100 or more of the bid price
and that for the contract deposit, 10/100 or more of the
purchase price.
(3) The bid bond or contract deposit may be substituted by the state or
public bonds or securities listed in the
securities market or KOSDAQ market
pursuant to the provisions of the Korea Securities and Futures Exchange
Act, or guarantee insurance
policies issued by an insurer pursuant to the
Insurance Business Act. In this case, the necessary requirements shall
NATIONAL TAX
COLLECTION ACT
28
be prescribed by the Presidential Decree.
(4) If the successful bidder does not make a contract to purchase the property,
the bid bond shall be reverted to the National Treasury.
Article 66 (Restriction on Purchaser)
No defaulted taxpayer or tax officials may purchase the attached property
directly or indirectly.
Article 67 (Method and Notice of Public Auction)
(1) The public auction shall be conducted by the method of a bid or auction
(including what has utilized the information and communications
network
under subparagraph 18 of Article 2 of the Framework Act on National
Taxes).
(2) When the director of the tax office intends to conduct the public auction,
he shall make the following notification to the public.
In this case, the
public auction on several occasions such as an auction or re-auction for
the identical property may be publicly
notified en bloc:
1. Time limit for payment of purchase money;
2. Name, location, quantity, quality, the estimated sale price and other
important factors of the property for public auction;
3. Date (the period of bidding in the case of period bidding) and place
of auction or bidding;
4. Date and place of opening the bids;
5. If bid bond is to be received, the amount; and
6. If the property for public auction is a share of a common property,
the fact that the co-owners (excluding defaulted taxpayers;
hereinafter
the same shall apply) hold a preferential right to purchase.
(3) The public auction notification shall be bulletined
at the regional tax
service, tax office, customs house, Si/Gun, or other proper places: Provided,
That if necessary, it may be
announced in the Official Gazette or daily
newspapers.
(4) In making a public auction notification under paragraph (3), its contents
shall be made known by means of the information and
communications
network under subparagraph 18 of Article 2 of the Framework Act on National
Taxes along with a bulletin or announcement.
NATIONAL TAX COLLECTION ACT
29
(5) For the public auction of the property, an auctioneer may be selected
to handle the auction procedure.
(6) Matters necessary for the public notification under paragraph (2) shall
be determined by the Presidential Decree.
Article 68 (Public Auction Notification)
Upon making the notification under Article 67 (2), the director of the tax
office shall inform the persons falling under any of
the following subpara-
graphs of the contents thereof:
1. Defaulted taxpayers;
2. Owners of the securities for tax payment;
3. Where the property for public auction is a share of the common property,
co-owners; and
4. Persons who hold rights on lease on a deposit basis, rights of pledge,
mortgages and other rights on the property for public auction.
Article 69 (Notification of Cancelling Public Auction)
Upon cancelling the attachment of the property concerned before making
a notice of sales decision, the director of the tax office shall notify the
cancellation of the public auction to the public.
Article 70 (Period for Notification of Public Auction)
The public auction shall be conducted ten days after the date of notification:
Provided, That this shall not apply in cases where it costs much to keep
the property, or the value thereof is apprehended to decrease
substantially.
Article 71 (Suspension of Public Auction)
(1) If the defaulted taxpayer or the third person has paid up the national
taxes, additional amount, and disposition fee for arrears
before making
a notice of sales decision, the public official who conducts the auction
shall suspend the public auction of the
property. In this case, he may
give a verbal or other notice of the suspension to those bidders instead
of making a public notice
under Article 69.
(2) In putting up various properties for the public auction as a whole,
if the proceeds from partial sale are appropriated for the
whole defaulted
tax amount, the public auction of the remaining properties shall be
NATIONAL TAX COLLECTION ACT
30
suspended.
Article 72 (Restrictions on Participation in Public Auction)
Persons who are deemed to fall under any of the following cases may
be
restricted by the director of the tax office from participating in the public
auction, or from obtaining access to the auction
house for two years after
the fact is found. This restriction shall also be applied to those who have
employed such restricted
persons within two years, or employed them as
their bidding agents: 1. Where he hinders other bidder's participation in the public auction,
the determination of the bidder with the highest price, or
the purchaser's
payment of the price;
2. Where he colludes with other bidders to unreasonably lower the price
of the property at the public auction; and
3. Where he files an application for the purchase with a false name.
Article 73 (Bidding and Opening of Bids)
(1) A bidder shall submit an application stating his name, address, tempo-
rary domicile, the denomination of property which he
desires to purchase,
its price, bid bond, and other necessary descriptions to the public officials
who conduct the auction before
opening the bids.
(2) The public official who conducts the auction shall openly oversee the
public auction and enter each bid price in his bidding
report.
(3) The successful bidder shall be determined by the highest bid price
which exceeds the estimated sale price.
(4) If there are two or more successful bidders, the final bidder shall be
determined by lot, immediately.
(5) In the case of paragraph (4), if a bidder is not present or does not
draw a lot, a public official who has not been involved
in the bidding will
draw a lot on his behalf.
(6) If there is no bid exceeding the estimated sale price, another bidding
may be conducted immediately at the same place.
Article 73-2 (Co-owner s Right for Preferential Purchase)
(1) Where the property for public auction is a share of the common property,
any co-owner may provide a bid bond for public auction under Article 65
not later than the notice of sales decision, and submit
a report on his
intention to purchase the relevant property on the preferential basis at
the same price as the highest bidding
price which exceeds the estimated
sale price.
NATIONAL TAX COLLECTION ACT
31
(2) In case of paragraph (1), the director of the tax office shall decide
to sell the property for public auction to the co-owner,
notwithstanding
the provisions of Article 73 (3).
(3) When there are several co-owners who have submitted a report on
their intention to purchase the property for public auction
on the preferential
basis and have completed the procedures referred to in paragraph (2),
they may purchase the relevant property
according to the ratio of their
common shares unless there is any special consultation thereabout.
(4) Where a person who was decided
to purchase the property for public
auction under paragraph (2) has failed to pay the purchase price, the
director of the tax office
may decide to sell the property for public auction
to other bidder who offers the highest amount which exceeds the estimated
sale
price.
[This Article Newly Inserted by Act No. 8055, Oct. 27, 2006]
Article 74 (Re-auction)
(1) Re-auction shall be conducted when nobody desires to purchase the
property for public auction or the bid price is less than
the estimated sale
price.
(2) When the purchaser does not pay the purchase price by the time limit
for payment, re-auction shall be conducted after cancelling
the sale contract
with the purchaser.
(3) The provisions of Articles 63 through 73 shall apply mutatis mutandis
to the case where a re-auction is conducted.
(4) In case where the auction is miscarried or there is no bidder at an
auction for the attached property, the estimated sale price
shall, at each
auction from the next occasion, be gradually decreased by the amount corre-
sponding to 10/100 of the estimated
sale price with the limit of the amount
corresponding to 50/100 of the estimated sale price, and where the property
is not sold
even at an auction with the decreased amount corresponding
to 50/100 of the estimated sale price, its re-auction may be conducted
with the estimated sale price newly determined pursuant to Article 63:
Provided, That this shall not be applicable to the case
as provided for
in Article 73 (6).
32
days.
Article 75 (Delivery of Notice of Decision to Sell and Time Limit for
Payment of Purchase Price)
(1) Upon determining the sale, the director of the tax office shall deliver
to the purchaser a notice of decision to sell stating
the sale price and the
time limit for payment: Provided, That this notice may be substituted
by a verbal notice when there is an
immediate payment of the purchase
price of the property which requires no registration or register of the
transfer of its rights.
(2) The time limit for payment as provided for in paragraph (1) shall be
not more than seven days from the date of determining the
sale: Provided,
That the director of the tax office may extend the limit within sixty days,
if it is deemed necessary.
Article 77 (Effect of Payment of Purchase Price)
(1) Upon paying the purchase price, the purchaser shall obtain the property.
(2) If the director of the tax office receives the
purchase price, the
delinquent amount shall be considered to be collected to that extent.
Article 78 (Cancellation of Decision
to Sell)
(1) Where falling under one of the following subparagraphs, the director
of the tax office shall cancel the decision on sale of
attached properties,
and notify the purchaser of the said purport:
1. After making a decision on sale under Article 75, in case where any
defaulted taxpayer has paid the defaulted amount relating
to
attachment, and the disposition fee for arrears, by obtaining a consent
of the purchaser, before the purchaser pays the purchase
price, and
files an application for a cancellation of the decision on sale; and
2. Where the purchaser fails to pay the purchase price not later than
the designated time limit, even if a preemptory notice has
been made
under Article 76.
NATIONAL TAX COLLECTION ACT
33
(2) Where any decision on sale of attached properties is cancelled under
paragraph (1) 1, the contract deposit shall be returned
to the purchaser,
and where any decision on sale of attached properties is cancelled under
paragraph (1) 2, the contract deposit
shall be reverted to the National
Treasury.
[This Article Wholly Amended by Act No. 6805, Dec. 26, 2002]
Article 79 (Procedures for Transferring Rights on Sold Property)
If
the defaulted taxpayer fails to follow the procedures of transferring rights
on sold property, the director of the tax office shall
vicariously take the
procedures for transferring rights on the sold property under the conditions
as prescribed by the Presidential
Decree: Provided, That in case where
the provisions of Article 61 (1) (proviso) or 62 (2) are applicable, the Korea
Asset Management
Corporation may conduct it by proxy, and the execution
of procedures in this case shall be regarded as having been done by the
director of the tax office.
SECTION 11 Liquidation
Article 80 (Scope of Distribution of Money)
(1) The director of the tax office shall distribute the money falling under
any of the following subparagraphs under Article 81:
Provided, That where
the provisions of Article 61 (1) (proviso) or 62 (2) are applicable, the
Korea Asset Management Corporation
may conduct it by proxy, and the
distribution of money in this case shall be regarded as having been done
by the director of the
tax office: 1. The attached money;
2. The money received from the defaulted taxpayer or the third obligor
due to the attachment of claims, securities or intangible
properties,
etc.;
3. The proceeds from sale of the attached property and interest for deposit
of such proceeds from sale; and
4. The money received by requesting delivery.
NATIONAL TAX COLLECTION ACT
34
(2) Where the Korea Asset Management Corporation conducts the dis-
tribution of money by proxy under the proviso to paragraph (1),
the provi-
sions of Article 61 (5) and (7) shall be applied mutatis mutandis.
Article 81 (Distribution Method)
(1) The money as provided for in Article 80 (1) 2 and 3 shall be distributed
to the national taxes, additional dues, disposition
fee for arrears, and
other claims as provided for in the following subparagraphs:
1. The national taxes, additional dues, and disposition fee for arrears
related to the attachment;
2. The national taxes, additional dues, disposition fee for arrears, local
taxes or public charges for which the delivery is requested;
and
3. Claims secured by the right of lease, pledge, or mortgage related to
the attached property.
(2) The money as prescribed in Article 80 (1) 1 and 4 shall be appropriated
for the national taxes, additional dues and disposition
fee for arrears related
to the attachment or the request for delivery, respectively.
(3) The money left over after distribution under paragraphs (1) and (2)
shall be paid back to the defaulted taxpayer.
(4) Where the sale price can not cover the total amount of the national
taxes, additional dues, disposition fee for arrears, and
other claims as
provided for in subparagraphs of paragraph (1), the director of the tax
office shall distribute the money in the
order as prescribed in the Civil
Act and other Acts and subordinate statutes.
(5) When the director of the tax office has distributed or appropriated
the money of the delinquent amount as provided for in paragraph
(1) or
(2) in preference of the money of the delinquent amount due to mis-
understanding of distribution order, unreasonable request
for delivery or
other reasons analogous to these, he shall return the money to the creditors
which have priority over the national
taxes by the rule of the national
tax refund procedure.
Distribution of the proceeds from the sale of rights on the national or public
NATIONAL TAX COLLECTION ACT
35
properties attached under Article 52 (1), shall be carried out in a manner
that the priority shall be given to the remaining installment
of the purchase
price, and then to the delinquent amount and, if there is still some amount
of money left, it shall be returned
to the defaulted taxpayer.
Article 83 (Preparation of Distribution Statement)
(1) When the director of the tax office distributes
the money under Article
80, he shall prepare a distribution statement and deliver it to the defaulted
taxpayer under the conditions
as prescribed by the Presidential Decree.
In this case, a person subject to the distribution shall make a request
for distribution
prior to the preparation of a distribution statement by
the director of the tax office.
(2) Disposition for arrears shall be terminated with preparation of the
distribution statement as provided for in paragraph (1).
(3) A person who has the right of lease on a deposit basis, right of pledge
or mortgage on the sold property, a person who is the
obligee of provisional
attachment on the sold property, or a person who has requested the dis-
tribution of proceeds may request
the perusal or reproduction of the dis-
tribution statement to the director of a tax office.
(4) The director of the tax office shall comply with the request for perusal
or reproduction as provided for in paragraph (3).
Article 84 (Deposit of Distributed Money)
(1) Where there is any distributed money which has not been paid to
a creditor, the director of the tax office shall deposit it
in the Bank of
Korea (including agencies for the National Treasury).
(2) Upon deposit as provided for in paragraph (1), the director
of the
tax office shall inform the creditor of such deposit.
(3) The provisions of paragraphs (1) and (2) shall apply to the money
to be paid to the defaulted taxpayer.
SECTION 12 Write-off
Article 85 (Suspension of Disposition for Arrears and Public Notification
Thereof)
(1) If there would be no remainder, after the estimated value of the properties
NATIONAL TAX COLLECTION ACT
36
which are objects for disposition for arrears is appropriated for the disposition
fee for arrears, the disposition for arrears shall
be suspended.
(2) When properties which are objects for disposition for arrears are such
properties as hypothecated for contractual
rights as provided for in Article
35 (1) 3 of the Framework Act on National Taxes, if there would be no
remainder after the estimated
value is appropriated for the disposition
fee for arrears and the amount of claims concerned, the provisions of para-
graph (1)
shall also apply.
(4) If any cause for suspending disposition for arrears as provided for in
paragraph (1) or (2) occurs, the defaulted taxpayer (if
he is not the owner
of the property which is the object of the disposition for arrears, the owner
of the property) may request
that the director of the tax office suspend
such disposition for arrears.
1. If the defaulted taxpayer satisfies the standard of a sincere taxpayer
established by the Commissioner of the National Tax Service;
and
2. If it is deemed that the delinquent amount may be collected by deferring
the attachment of properties or the sale of the attached
properties and
thereby the business may be operated normally.
(2) When the director of the tax office defers the attachment or sale under
paragraph (1), he may cancel the attachment of property
already made,
if it is deemed necessary.
(3) When the director of the tax office defers the attachment of property
or cancels the attachment under paragraphs (1) and (2),
he may request
that the taxpayer provide a corresponding security for tax payment:
Provided, That this shall not apply in cases
where the sincere taxpayer
NATIONAL TAX COLLECTION ACT
37
submits a plan for the payment of delinquent amount and the Defaulted
National Tax Adjustment Committee under Article 87 recognizes
the appro-
priateness of the plan for the payment of delinquent amount.
(4) Necessary matters concerning the procedure of application, approval,
notice, etc., of the deferment as provided for in paragraph
(1) shall be
determined by the Presidential Decree.
(5) The provisions of Article 20 shall apply mutatis mutandis to the cancella-
tion of the deferment of disposition for arrears
and the lump-sum collection
of the delinquent amount.
[This Article Newly Inserted by Act No. 3661, Dec. 19, 1983]
Article 86 (Write-off)
(1) Where any of the following subparagraphs occurs, the director of the
tax office may write off the relevant taxes:
1. Where the disposition for arrears is terminated, and the distributed
money is short of paying the delinquent amount;
2. Where it falls under Article 85;
3. Where the extinctive prescription for collection of the national tax is
completed; and
4. If it is deemed impossible to collect the national taxes under the conditions
as prescribed by the Presidential Decree.
(2) Upon finding other attachable properties after having taken a disposition
for write-off under paragraph (1), the director of
the tax office shall cancel
such disposition, and take a disposition for recovery of arrears immediately.
Article 87 (Defaulted National Tax Adjustment Committee)
(1) The Defaulted National Tax Adjustment Committee shall be established
under a regional tax service and other tax offices as designated by the
Presidential Decree in order to deliberate on the adjustment
of defaulted
national taxes.
(2) The organization, operation and other requirements of the Defaulted
National Tax Adjustment Committee as provided for in paragraph
(1) shall
be determined by the Presidential Decree.
Article 88 (Enforcement Decree)
Matters necessary for the enforcement of this Act shall be prescribed by
the Presidential Decree.
NATIONAL TAX COLLECTION ACT
38
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on January 1, 1975.
(2) (Transitional Measures) Procedures or disposals taken
for the collection
of national taxes in accordance with the previous provisions shall be considered
to be taken under this Act,
as far as this Act includes the corresponding
provisions.
(3) (Ditto) The proviso of Article 21 (including a case where it is applied
mutatis mutandis in Article 22 (4)) shall apply to the
defaulted national
taxes at the time when this Act enters into force.
(4) (Examples of Application) The provisions of Article 22
(3) shall apply to
the first increased additional dues for the defaulted national taxes after this Act
enters into force.
(5) (Relations with Other Acts and Subordinate Statutes) When other Acts
and subordinate statutes quote provisions of the previous
National Tax
Collection Act, they shall be considered to quote the corresponding provisions
of this Act.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1984.
Article 2 (Examples of Application as to Notice to Taxpayer)
The amended provisions
of the latter part of Article 12 shall apply to the
portion for which notice of tax payment is delivered to the taxpayer with
the
secondary liability for the first time, after this Act enters into force.
Article 3 (Examples of Application as to Effect of Deferment
of Collection)
The amended provisions of Article 19 (4) shall apply to the portion of the
deferment of collection made for the
first time under Article 122 of the
Company Reorganization Act, after this Act enters into force.
Article 4 (Examples of Application
as to Effect of Participation in
Attachment)
The amended provisions of Article 58 (1) 1 shall apply from the participation
in the attachment made for the first time, after this
Act enters into force.
Article 5 (Transitional Measures concerning Additional Dues)
Notwithstanding the amended provisions of Articles
21 and 22, previous
provisions shall apply to the additional dues (including the increased
NATIONAL TAX COLLECTION ACT
39
additional dues which shall be collected in addition to the additional dues)
for the national taxes defaulted before this Act enters
into force.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1987.
Articles 2 through 7 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1994.
Articles 2 through 9 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1994.
Article 2 (Examples of Application as to Increased Additional Dues)
The amended
provisions of Article 22 (1) shall apply to the national taxes
in arrears for the first time, after this Act enters into force.
Article 3 (Examples of Application as to Attachment before Becoming
Definite)
The amended provisions of Article 24 (5) 2 shall apply to those attached
for the first time, after this Act enters into force.
Article 4 (Examples of Applications as to Effect of Attachment of Real Estate,
etc.)
The amended provisions of Article 47 (2) shall apply to the attached
property the ownership of which is transferred for the first
time, after
this Act enters into force.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1995.
Article 2 (Examples of Application to Deferment of Collection)
The amended
provisions of Article 15 (1) shall apply to those for which
a procedure of a mutual agreement is in progress on the date when this
Act enters into force.
NATIONAL TAX COLLECTION ACT
40
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1996. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM
This Act shall enter into force on the date of its promulgation: Provided,
That the amended provisions of Articles 5 and 6 shall
enter into force on
March 1, 1997.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDUM
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on January 1, 2000.
(2) (Applicable Cases for Collection before Payment Period)
The amendments
to Article 14 (1) 4 shall be applicable from the disposition of transaction
suspension taken first by the clearing
house after the enforcement of this
Act.
(3) (Applicable Cases for Public Auction) The amendments to Articles 79
and 80 shall be applicable from the first sale after the
enforcement of this
Act.
ADDENDA
Article 1 (Enforcement Date)
The Act shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on January 1, 2003.
(2) (Application Example to Bid Bond for Public Auction)
The amended
NATIONAL TAX COLLECTION ACT
41
provisions of Article 65 (3) shall apply to the portion of commencing a public
auction first after the enforcement of this Act.
(3) (Application Example to Suspension of Public Auction) The amended
provisions of Article 71 (1) shall apply to the portion of
taking part in a
bidding under Article 73 first after the enforcement of this Act.
(4) (Application Example to Cancellation of
Decision on Sale) The amended
provisions of Article 78 (1) 1 shall apply to the portion of making a decision
on sale first after
the enforcement of this Act.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on the date of its
promulgation.
(2) (Application Example) The amended provisions of main sentence of
Article 21 shall apply to the first portion that arrives its
time limit for payment
(in the case of the portion whose tax collection is deferred, the period of
deferment of collection) after
the enforcement of this Act.
ADDENDUM
This Act shall enter into force on the date of its promulgation.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicable Examples concerning Restriction on Attachment
on
Wage Claim)
The amended provisions of Article 33 shall apply to the portion attached first
after the enforcement of this Act.
Article 3 (Applicable Examples concerning Sale of Listed Stocks, etc.)
The amended provisions of Article 61 (2) shall apply to the
stocks listed
in the securities market or in the KOSDAQ market, which are sold for
the first time after the enforcement of this
Act.
Article 4 (Applicable Examples concerning Bid Bond, etc.)
NATIONAL TAX COLLECTION ACT
42
The amended provisions of Article 65 (3) shall apply to the portion paid
first after the enforcement of this Act.
Article 5 (Applicable Examples concerning Public Announcement of Public
Auction)
The amended provisions of Article 67 (2) 3 shall apply to the portion an-
nounced public auction publicly first after the enforcement
of this Act.
Article 6 (Applicable Examples concerning Extent of Distribution of Money)
The amended provisions of Article 80 (1)
3 shall apply to the portion made
the distribution of money first after the enforcement of this Act.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on the date of its
promulgation.
(2) (Applicable Examples concerning Co-owners' Right for Preferential
Purchase) This Act shall apply to the portion for which a
public notification
for public auction is made on or after the date when this Act enters into
force.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008.
Article 2 (Applicable Examples concerning Increased Additional Due)
The amended
provisions of Article 22 (2) shall apply to the portion that
is added on or after the date when this Act enters into force.
Article
3 (Applicable Examples concerning Exemption from Provision of
Security at Deferment of Disposition for Arrears)
The amended provisions
of proviso to Article 85-2 (3) shall apply to the
portion that is requested for deferment of disposition for arrears on or
after
the date when this Act enters into force.
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