Feeds

Tax dodge investigators hit Samsung

Chaebols wobble, but will they fall down?

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

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 Essential Guide to IT Transformation

More from The Register

next story
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
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
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
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
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
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.