Tax investigations revamped: Suwon City's 'Build Check' yields fivefold increase in collected taxes

Suwon City has achieved a remarkable surge in tax revenue, collecting 2.15 billion won (approximately $1.5 million) in back taxes in the first half of this year alone. This figure represents a more than fivefold increase compared to the 409 million won collected during the same period last year. The success is attributed to the city's innovative "Suwon-type Build Check" technique, a self-developed method for investigating tax evasion.

Traditional tax audits often struggle to detect intentional omissions or complex real estate transactions. Recognizing this limitation, the Suwon City corporate tax investigation team developed the 'Build Check' method. This approach focuses on high-risk areas prone to tax evasion, employing a systematic, step-by-step process with cross-verification. The technique meticulously tracks real estate transaction details, such as sales, ownership changes, and construction permits, over time, creating a dense network of data.

To achieve this, Suwon City integrated digital systems from various government bodies, including the Ministry of Land, Infrastructure and Transport's information system and the construction administration system (Seum터). This interconnected approach allows for a granular, cross-verified analysis of the actual use of real estate at each stage. The city piloted the 'Build Check' technique on 21 corporations suspected of tax evasion in the first half of the year, successfully identifying 1.01 billion won in undeclared taxes from ineligible companies.

Despite a challenging real estate market, Suwon City's scientific and efficient approach to tax investigations has significantly boosted municipal finances. A representative from the corporate tax investigation team stated, "We will continue to enhance the Build Check technique to realize tax justice and fair taxation. The secured tax revenue will be fully returned to citizens through welfare and convenience services."

“

We will continue to enhance the Build Check technique to realize tax justice and fair taxation. The secured tax revenue will be fully returned to citizens through welfare and convenience services.