Feeds

Tax dodge investigators hit Samsung

Chaebols wobble, but will they fall down?

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.