South Korea vows to stop tax abuse

Agence France Presse

Seoul, June 6:

South Korea today vowed to seek revisions to taxation treaties with other states to stop foreign investors or offshore funds from abusing the pacts to avoid tax payment, officials said. The finance and economy ministry said it was seeking to levy taxes on investment funds even if they are registered in a state which has a treaty on preventing double taxation with South Korea. The move followed complaints here that foreign investors or offshore entities made hefty gains here while avoiding due taxation by using tax havens. South Korea are to hold talks in Seoul with Malaysia from June 7 to June 10 to discuss ways to revise their tax treaty and stop the abusing of taxation rules, the ministry said in a statement. “It is a worldwide standard to prevent the abusing of tax treaties and strengthen rules on tax havens,” it said.