??類쏄콬 ??怨몃쾳style=\'font-size:12.0ptfont-family:"Times New Roman","serif"color:#0070C0\'>NTS
to Introduce Horizontal Monitoring Later This Year
The
NTS will introduce what is tentatively called a "Horizontal monitoring"
program
which involves the conclusion of a "Compliance Agreement" with compliant
taxpayers. Under what is best described as a gentlemen\'s agreement, the NTS
will not audit the taxpayer\'s tax return, as long as the taxpayer had fulfilled
what has been agreed upon.
The
proposed program is closely aligned with the NTS goal of serving honest
taxpayers as its "most valued customers.:" In the previous, vertical way of
monitoring, verification and audit of tax returns began only after a tax return
was filed. Under the horizontal -or equal - relationship, companies with a tax
control framework (TCF) effective enough to guarantee self-control over tax
compliance will be invited to enter into a Compliance Agreement, which entails
holding regular discussions with the NTS with the mutual objective of settling
tax issues in advance of tax return filings.
The
Dutch and Irish tax administrations have also begun pursuing similar programs,
following the spirit of the Seoul Declaration announced during the third OECD
Forum on Tax Administration meeting held in 2006.style=\'mso-spacerun:yes\'>
The
NTS will conduct a pilot run of the program first to companies having a high
level of business transparency and ethics, as well as a strong internal control
system. The program will eventually be rolled out to a wider taxpayer base
depending on the result of the pilot.
Horizontal
monitoring provides a win-win for taxpayers and revenue bodies alike: Compliant
companies are able to minimize tax uncertainties by having their tax issues
settled upfront, whereas tax authorities can maximize administrative efficiency
by re-allocating audit resources away from compliant taxpayers and concentrating
them into those requiring the most enforcement attention.style=\'mso-spacerun:yes\'>
Under
the Compliance Agreement, a company agrees to disclose all its tax issues on a
voluntary basis. In return, the NTS has the obligation to provide binding
answers on a timely basis.
mso-fareast-font-family:獄쏅?源줺so-font-kerning:1.0ptmso-ansi-language:EN-US
mso-fareast-language:KOmso-bidi-language:AR-SA\'>The NTS will continue to
strengthen its cooperation with foreign revenue bodies, including those in the
EU, establish a tax system in line with the global standard, and ultimately
a business-friendly tax environment for all investors, both domestic and
foreign.
