Feeds

Tax dodge investigators hit Samsung

Chaebols wobble, but will they fall down?

  • alert
  • submit to reddit

Mobile application security vulnerability report

Samsung Group is being probed for tax evasion by the South Korean authorities as part of the government's plan to stamp down on dodgy financial practices in family-run businesses. The South Korean government is looking into the business practices of a number of the country's chaebols, or conglomerates. It seems that the heads of some of the chaebols are suspected of avoiding paying tax when transferring money to their children. These family concerns in Korea are thought to be lagging behind over reforms to their shady financial practices, and the government has stepped in, the Associated Press has reported. President KimDae-jung last month stated his intention to become the first South Korean leader to get the chaebols on the straight and narrow. He has started his plan via tax audits. The National Tax Service said yesterday it was investigating the dealings of Samsung Group chairman LeeKun-Hee to see if he legitimately bequeathed wealth to his son. This will be the first of many investigations into the conglomerates - which have often been in bed with the previous military-backed governments. It is estimated these organisations may control up to 70 subsidiaries in the country, involved in the car, semiconductor and clothes industries. LeeKun-Hee's son inherited riches of 6 billion won (just shy of £5.5 million) in cash in 1996, and paid 1.6 billion won in tax. The maximum tax rate for inheritance in South Korea is 45 per cent, but apparently this rate is rarely paid by chaebols. Samsung is the country's second largest conglomerate, after Hyundai. ® Related Story Samsung to spend its way to RAM market domination

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.