South Korea Launches Tax Enforcement Actions Against Five Foreign Funds

At the end of September and beginning of October 2005, South Korean tax authorities imposed a 214.8 billion won (US $207 million) penalty against five foreign funds for tax violations associated with aggressive tax planning, including the use of tax treaties and low tax jurisdictions. Simultaneously, South Korea announced plans to try to renegotiate its tax treaties. In April 2005, South Korea started an audit against foreign funds apparently in part in response to growing calls by South Korean civic groups accusing foreign investors or offshore entities of making huge gains while avoiding taxation ? [more]