It has been confirmed that the National Tax Service (NTS) is conducting a surprise tax probe against Google Korea.안전놀이터
According to the IT industry on Monday, the Seoul Regional Tax Service sent investigators to Google Korea's headquarters in Yeoksam-dong, Gangnam-gu, Seoul to secure accounting books and computer documents.
Industry sources say that the tax authorities have begun a full-fledged investigation into the recent issue of the high-income YouTube manufacturer's tax evasion.
As of last year, 1,275 YouTube channels were created by Koreans with more than 100,000 subscribers. According to the Korea Broadcasting System (KBC), the YouTube channel 'Form-Form-Toy' made about 3.16 billion won last year.
However, it has been pointed out that the income and tax status of YouTube, which is not part of the Multi-Channel Network but operates as an individual, are uncertain.
National Tax Service Commissioner Han Seung-hee also said in a parliamentary audit in October that he agrees with YouTube, pointing out that it is necessary to strengthen taxes such as tax investigations.
When asked whether the personal tax on YouTube where 100,000 subscribers earn 2.8 million won per month, Han said, "I am aware of the tax trend. "I will make no profit from the tax evasion." The National Tax Service has informed 513 YouTube users of income reports.
On the other hand, some analysts say that the tax authorities are looking for suspicion of Google Korea's offshore tax evasion.
Although Google is estimated to make about $5 billion (5 trillion KRW) in annual sales in South Korea, its tax revenue is very low compared to the amount of sales.
The company has been unable to collect taxes on the profits from App Store, which is the largest portion of sales, because it has servers overseas and no fixed operations in Korea.
Google explained that it is paying taxes in Korea and that it is complying with local tax laws and tax treaties.
Nevertheless, the tax department and discussions on the so-called "Google Tax" are also getting more active. As the revision of the Value-added Tax Act was passed at the National Assembly plenary session on the 8th of August, Google will have to pay VAT on services such as advertising and cloud starting from July of next year.
Regarding the investigation, a Google Korea official said, "There is nothing to confirm."
"We cannot confirm the information on individual taxes," said an official from the National Tax Service.