The National Tax Service (hereinafter “NTS”) has declared, by way of a press release on July 10, 2012, that it would launch tax investigations of persons suspected of offshore tax evasion. According to the NTS, the targets for this tax investigation are individuals that are suspected of offshore tax evasion that were selected from the list of undeclared foreign account holders analyzed based on foreign tax authorities’ tax information exchange data.

For instance, the NTS is investigating cases where a large sum of royalties received in consideration for supplying technology, and such royalties were transferred to foreign personal accounts in order to evade corporate taxes, and failure to report such foreign bank accounts. Also, the NTS is expected to begin exchange of financial exchange with Switzerland in second half of 2012, and to begin exchanging tax information with tax havens such as Marshall Islands and Cook Islands in efforts to strengthen international cooperation system for tracking down foreign tax evasion.