ID :
191656
Wed, 06/29/2011 - 02:39
Auther :

Deferred bribery

The prosecution has been looking into an allegation that a former high-ranking taxman received 3 billion won (about $2.7 million) from the SK Group.
The former director general of the Seoul Regional Tax Office has received 50 million won monthly from two SK subsidiaries for the past five years. The tax accountant Lee Hee-wan also received 5 million won per month for a total of 300 million won from the water purifier maker ChongHo Nais.
He claims that the money is a consulting fee. But the money he received is unusually large. He headed the audit team on three to four SK subsidiaries and ChongHo Nais between April, 2005 and June, 2006.
Prosecutors suspect Lee's slashing of SK's tax amount in return for an SK's guarantee to hire him as its tax consultant upon his retirement. Prosecutors take pains to criminalize the alleged Lee-SK collusion as a deferred bribery. They also suspect part of the money might have gone to the incumbent tax officials.
Lee's consulting fee is 25 times as large as what his peers get -- 2-3 million won per month. His contract with SK covered five years, longer than one to two years for his peers.
It may take time before the tax office sheds off the image of a hot bed of corruption.
Han Sang-yul, former commissioner of the National Tax Service, received 660 million won in alleged consulting fee from seven companies when he was hiding in the U.S. last year.
It has been business as usual for many NTS retirees to sign consulting service contracts with the companies which they audited while in office.
Six out of the past 16 commissioners of the NTS were either jailed or resigned over irregularities. The tax office was a center for mobilizing campaign fund for the ruling party's candidate in 1987.
Probes have been under way for bribery cases involving incumbent and former tax officials. Many junior tax officials got jailed, dismissed or reprimanded over kickbacks.
The NTS allegedly could have collected additional 2.2 trillion won for the past five years. The under-taxation might be either technical mistakes or arbitrary tax cuts in return for bribery.
The NTS has been notorious for lacking in transparency. When the tax rate is high, with tax codes having a room for arbitrary interpretation, corruption will prone to occur.
Whenever bribery cases hit the tax officials, the tax office held rallies to eradicate corruption. The ceremonial lip service only draws cynicism from the people.
The government is criminalizing the privileges high-ranking government officials, including judges and prosecutors, will enjoy upon retirement. Former prosecutors and judges will no longer be able to represent legal cases under their jurisdiction for up to one year following retirement.
Ministers, vice ministers, assistant vice ministers and heads of local autonomous bodies could not get reemployment in the sectors they have supervised for one year upon retirement. The same restrictions should be applicable to the retiring tax officials. The nation needs to uproot the hybrid corruptions.

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