Tax reimbursements totaled over six trillion won, or well over five billion U.S. dollars, last year.
According to data obtained by ruling Saenuri Party lawmaker Kim Gwang-lim from the National Tax Service(NTS), reimbursements that were returned to taxpayers due to overpaid or wrongfully paid taxes reached six-point-three trillion won in 2015. The figure is more than double compared to a little over three trillion recorded in 2014 and 2013.
Of the reimbursed amount, over two-point-eight trillion won was returned after the taxpayer found the initial taxation faulty and filed for a reassessment. Some two-point-five trillion won was also reimbursed following legal complaints and disputes raised by taxpayers and proceedings by the Review Committee for National Tax Appeal.
Representative Kim blamed administrative opportunism in conducting tax probes. He said that officials also levy taxes without considering the legality or a taxpayer's situation, which has led to the National Tax Service having lost in many litigation cases. Kim said that tax probes must be carried out in a way that is convincing to companies, organizations and the general public.
Tax reimbursements are different from tax refunds in that they should not have been collected in the first place.