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BUSAN METROPOLITAN CITY FRAMEWORK ORDINANCE ON CITY TAXES

By Tax Administration Division Dec 8, 2022 526  Views
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BUSAN METROPOLITAN CITY FRAMEWORK ORDINANCE ON CITY TAXES

Partially Amended by Ordinance No. 6123, May 27, 2020

  • Article 1 (Purpose)
  • The purpose of this Ordinance is to prescribe the matters delegated by the Framework Act on Local Taxes and the Enforcement Decree of the same Act and those necessary for implementing said statutes.
  • Article 2 (Application)
  • Except as otherwise expressly prescribed in the Framework Act on Local Taxes (hereinafter referred to as "Act") and the Enforcement Decree thereof, this Ordinance shall apply to imposing and collecting (including all affairs related to imposing and collecting) Busan Metropolitan city Taxes (hereinafter referred to as "City tax")(hereinafter referred to as "young"). <Amended by May 27, 2020>
  • Article 3 (Delegation, etc. of Authority of Imposition and Collection)① The Busan Metropolitan City Mayor (hereinafter referred to as "Mayor") shall delegate authority for imposing and collecting City taxes [(excluding the authority delegated to the head of the Busan Metropolitan City Vehicle Registration Office (hereinafter referred to as "head of the Vehicle Registration Office") pursuant to paragraph ②] to the head of a Gu/Gun (hereinafter referred to as "head of a Gu") having jurisdiction over the place for tax payment on the relevant objects of taxation pursuant to Article 6 ① of the Act: Provided, That where any Busan Metropolitan City Ordinance enacted based on the delegation by any local tax-related Act under Article. 2 ① 4 of the Act otherwise prescribes or where an agreement on the entrustment or delegation of authority is concluded with the head of a central administrative agency (including the head of an institution under the jurisdiction of a central administrative agency) or the head of any other local government, such Busan Metropolitan City Ordinance or agreement shall apply accordingly.
  • ② The Mayor shall delegate authority for the following matters to head of the Vehicle Registration Office pursuant to Article 6 ① of the Act:
    • 1. Imposing and collecting an acquisition tax incurred from registering automobiles and construction machinery: Provided, That the following shall be excluded;
      • (a) Imposing and collecting due to failure to report or pay the acquisition tax;
      • (b) Imposing and collecting due to under-reporting or underpaying the acquisition tax;
      • (c) Retrospectively collecting from a person exempted from or granted a reduction of the acquisition tax;
      • (d) Imposing and collecting the acquisition tax upon changing automobile structure and for a two-wheel automobile.
    • 2. Imposing and collecting the automobile tax from a specialized credit finance business company referred to in subparagraph 15 of Article 2 of the Specialized Credit Finance Business Act, which owns at least 1,000 automobiles registered in the Busan Metropolitan City (hereinafter referred to as the "City") as of January 1 or the tax base date annually;
    • 3. Receiving reports on an automobile tax related to the transfer registration and cancellation registration of an automobile referred to in Article 128 ⑤ of the Local Tax Act;
    • 4. Receiving reports on registration and license tax assessed upon registering an automobile or construction machinery, which is entrusted by the head of a Gu to the Mayor.
  • ③ Notwithstanding paragraph ①, the Mayor shall directly impose and collect City taxes in any of the following cases: <Amended by May 27, 2020>
    • 1. Tobacco consumption tax;
    • 2. Automobile tax on driving an automobile;
    • 3. Local consumption tax;
    • 4. The total amount (excluding any amount in arrears of a City tax falling under any of the following items; hereafter referred to as "substantial arrears" in this Article) of Gu/Gun City taxes in arrears of a taxpayer whose amount in arrears for each tax item of such Gu/Gun City taxes, is at least five million won as of the day immediately after the closing date of the relevant fiscal year, among City taxes imposed by the head of a Gu;
      • (a) The amount in arrears of a City tax either surcharged on any Gu/Gun tax or specified and notified together with any Gu/Gun tax;
      • (b) The amount in arrears of a City tax with respect to which a litigation is pending (including where an objection, request for examination or request for adjudication under the Act; or a request for examination under the Board of Audit and Inspection Act, is pending) as of the day immediately after the closing day of the fiscal year in which such City tax was imposed; or which are finally determined as a rehabilitation claim in accordance with the rehabilitation procedures prescribed in the Debtor Rehabilitation and Bankruptcy Act; /li>
      • (c) The amount in arrears of a City tax where revoking or changing a disposition for imposition of such City tax due to the occurrence of a cause of revocation or change thereof.
  • ④ A disposition for substantial arrears taken by the head of a Gu shall be deemed taken by the Mayor. In such cases, where, with respect to a disposition taken by the head of a Gu, an objection, request for examination or request for adjudication under this Act; a request for examination under the Board of Audit and litigation is filed, the head of a Gu shall perform affairs related to such objection request or litigation.
  • ⑤ Notwithstanding paragraph ①, the Mayor may, in the following cases, directly conduct a tax investigation under Article 2 ① 36: <Amended by May 27, 2020>
    • 1. A corporation whose capital is at least five billion won or who employs at least 100;
    • 2. A person who acquires an object of taxation worth at least three billion won;
    • 3. A person whose amount subject to non-taxation or exempted or reduced tax amount is 100 million won;
    • 4. Other cases where the head of a Gu requests a tax investigation or the Mayor considers a tax investigation necessary on the grounds that a local tax is deemed unfairly evaded, refunded or reduced.
  • Article 4 (Entrustment of Affairs Concerning Report of Local Taxes)① In the following cases, the Mayor (referring to the head of a Gu and the head of the Vehicle Registration Office where the relevant authority is delegated to such heads pursuant to Article 3 ① and ②; hereinafter the same shall apply in this Article) may entrust the head of the relevant local government treating the affairs referred to in any of the following subparagraphs to process affairs concerning reporting of an acquisition tax, a registration and license tax and an automobile tax (limited to an automobile tax related to transfer registration and erasure registration under Article 6 ① of the Act, in case of automobile taxes; hereafter referred to as "affairs concerning report of local taxes" in this Article):
    • 1. Where, pursuant to Article 5 ② of the Motor Vehicle Registration Decree, any other registration authority processes registration affairs for automobiles whose principal place of use is the City district;
    • 2. Where, pursuant to Article 48 of the Motor Vehicle Management Act, the head of a local government other than a Gu/Gun processes affairs concerning reporting, etc. use of a two-wheel automobile, outside the City jurisdictional area.
  • ② Where the Mayor treats registration affairs for automobiles whose principal place of use is not the City district, pursuant to Article 5 ② of the Motor Vehicle Registration Decree, he/she may be entrusted to process affairs of the relevant local government concerning reporting of local taxes incidental to such registration affairs. In such cases, documents submitted for reporting local taxes shall be transmitted online to the head of the relevant local government within ten days from the date of reporting.
  • Article 5 (Methods for Delivering Document)① Service of documents under Article 30 ① of the Act shall be by delivery either by a tax official or by post or electronic service. In such cases, a notice for tax payment or a written demand shall be served by registered mail in case of serving such notice by mail, but such notice may be served by regular mail if the tax amount stated in an individual notice is less than 300,000 won.
  • ② The Mayor (referring to the head of a Gu where the relevant authority is delegated to the head of a Gu pursuant to Article 3 ①; hereinafter the same shall apply) may, in case of serving a document by delivery, request the head of a Eup/Myeon/Dong or the head of a Tong/Li/Ban to service such document pursuant to Article 12 of the Enforcement Decree of the Framework Act on Local Taxes, notwithstanding paragraph ①.
  • ③ In case of requesting the head of a Tong/Li/Ban to service a document pursuant to paragraph ②, the Mayor shall conduct prior education on such service and may subsidize expenses for such service, within budgetary limits.
  • Article 6 (Deposit of Money to Be Granted)
  • The Mayor shall deposit money to be granted to a creditor, taxpayer or other person in the depository of the Busan Metropolitan City pursuant to Article 143 ① of the Act.
  • Article 7 (Committee for Deliberation on Local Taxes)
  • The name of the committee to be established in the City pursuant to Article 147 ① of the Act shall be the Committee for Deliberation on Local Taxes.
  • Article 8 (Method of valuation of property owned)
  • The assessment of the property owned by each of the items in Article 62, paragraph 2, shall be in accordance with Article 4 of the Local Tax Law and Articles 3 and 4 of the Enforcement Decree of the same law.
  • [This Article Newly Inserted on May 27. 2020]
  • [The former Article 8 moved to Article 11 <May 27, 2020>
  • Article 9 (Appointment and dismissal of Busan Metropolitan City Selected Agent, etc.)
  • ① The Mayor may appoint an appropriate person from among those who are lawyers, tax accountants, and certified public accountants (limited to persons registered pursuant to Article 20, paragraph 2 ① of the Tax Law) in accordance with Article 62, paragraph 2, paragraph 6, and who have at least three years of experience in tax affairs, as designated agents of Busan Metropolitan City (hereinafter referred to as "Selected Agents"). However, any of the following persons shall be excluded from commission.
    • 1. In case five years have not elapsed from the date of disciplinary action under Articles 90 and 91 of the Attorney Act or disciplinary action for violation of Article 17 of the Tax Act;
    • 2. In case it is deemed that the performance of the duties is hindered, such as receiving money or entertainment from interested parties, soliciting or exercising unfair influence
    • 3. In case there are other reasons equivalent to subparagraphs 1 and 2
      • ② A person commissioned as a selected agent shall submit written consent and a written pledge for the appointment of a selected agent to the Mayor.
      • ③ The term of office of the selected agent shall be two years. However, they may be reappointed only once.
      • ④ The Mayor may dismiss the selected agent even during his/her term of office if he/she deems that the selected agent falls under any subparagraph of paragraph ①, or that he/she is disloyal to the performance of his/her duties or has other circumstances.
      • ⑤ In case the mayor dismisses a designated agent pursuant to paragraph ④, he or she shall appoint another designated agent to continue his or her duties.
      • ⑥ The designated agent shall continue to perform representation in the case specified before the expiration of the term, even if the term of office ends.
      • ⑦ The designated agent shall not provide or divulge information about taxpayers learned in the course of performing his or her duties to any other person or use it for any purpose other than that purpose.
      • ⑧ The mayor may award recognition to a person who has excelled in the activities of the selected agent.
      • ⑨ The mayor may pay allowances and travel expenses to the selected agent within the scope of the budget.
  • [This Article Newly Inserted on May 27, 2020]
  • Article 10 (Application, notification, etc. of selected agent)
  • ① The mayor shall inform the claimant or the appellant (hereinafter referred to as the "claimant") of the system of selected agents in the event that the claim is less than 10 million won in the event that a request for pre-tax inadequacy examination or an appeal (hereinafter referred to as a "claim, etc.") is received without an agent.
  • ② A person who intends to apply for a selection agent pursuant to section 93 ② and section 62 ②-1 of the Act shall submit the application to the mayor.
  • ③ The mayor shall notify the claimant and the agent respectively of the result of the application for a designated agent under section 93 ②-2 of the Act.
  • ④ In case the mayor appoints a designated agent, he/she shall deliver the relevant documents such as the claimant's complaint request to the selected agent without delay and cooperate with the matters necessary for the remedy.
  • ⑤ The mayor shall record and manage cases involving the appointment of a designated agent.
  • ⑥ The mayor shall, pursuant to section 62, paragraph 2, paragraph 5, notify the mayor of the city mayor of the outcome as soon as possible of the request for the appointment of a designated agent.
  • [This Article Newly Inserted on May 27, 2020]
  • Article 11 (Enforcement Rules)
  • Matters necessary for enforcing this Ordinance shall be prescribed by Rules. [The former Article 8 moved to Article 11 <May 27, 2020>

ADDENDA

  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force on the date of its promulgation.
  • Article 2 (Amendment of Other Ordinances)
  • ① Provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment and Support of Exemplary Taxpayers shall be amended as follows: In Article 3 ③, "Article 141 of the Framework Act on Local Taxes" shall be amended to "Article 147 of the Framework Act on Local Taxes." In subparagraph 1 (b) of Article 4 ③, "Article 82 of the Framework Act on Local Taxes" shall be amended to "Article 27 of the Framework Act on Local Taxes" and in subparagraph 1 (c) and 2 (b), "Article 77 of the Framework Act on Local Taxes" shall be amended to "Article 38 of the Local Accounting Act.
  • ② Some provisions of the Busan Metropolitan City Ordinance on the Payment of Monetary Rewards for Collecting Revenue shall be amended as follows: In Article 1, "Article 138 of the Framework Act on Local Taxes and Article 105-2 of the Enforcement Decree of the Framework Act on Local Taxes" shall be amended to "Article 105-2 of the Framework Act on Local Taxes and Article 82 of the Enforcement Decree of that Act. In the main sentence of Article 4 ①, "Article 138 ① of the Framework Act on Local Taxes" shall be amended to "Article 146 ① of the Framework Act on Local Taxes."
  • Article 3 (Relationship with Other Ordinance)
  • References in other Ordinances to the former Busan Metropolitan City Framework Ordinance on City Taxes or to the References in other Ordinances to the former Busan Metropolitan City Framework Ordinance on City Taxes or to the provisions thereof shall, if this Ordinance includes provisions corresponding thereto, be deemed to refer to this Ordinance or to said provisions in lieu of the former provisions.

ADDENDA

  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force on the date of its promulgation.
  • Article 2 (Amendment of Other Ordinances)
  • This Ordinance shall enter into force on the date of its promulgation. However, the amended provisions of Article 3 ③-4 and Article 3 ④ shall come into effect on Jan. 1, 2021.
  • Article 2 (Amendment of Other Ordinances)
  • The amended provisions of Article 10 shall also apply if a claim or objection is filed for a pre-tax review before the entry into force of this Ordinance and an application for the appointment of an agent after the entry into force of this Ordinance.
  • Article 3 (Interim Measures Regarding Selected Agents)
  • Any person appointed pursuant to Article 93 ② of the Act and Article 62 ② of the Act prior to the commencement of this Ordinance shall be deemed to have been appointed as a designated agent under this Ordinance. In this case, the date of reckoning of the appointed agent's term shall be the date of first commission.
  • Article 4 (Interim Measures Pursuant to the Abolition of the Examination Claim System)
  • Cases requested for examination on Jan. 1, 2021 shall be subject to the previous provisions, notwithstanding the amendments to Article 3, paragraph 3, paragraph 4, and Article 3, paragraph 4.
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