BUSAN METROPOLITAN CITY ORDINANCE ON COLLECTION OF CITY TAXES
Responsible Division: Director of Administration and Policy for
Planning & Coordination Office
Partially Amended by Ordinance No. 5560, Aug. 10, 2022
- Article 1 (Purpose)
- The purpose of this Ordinance is to prescribe the matters delegated by the Local Tax Collection Act and the Enforcement Decree of the same Act and those necessary for implementing the same statutes.
- Article 2 (Application)
- Except as otherwise expressly prescribed in the Local Tax Collection Act (hereinafter referred to as "Act") and the Enforcement Decree thereof, this Ordinance shall apply to collecting Busan Metropolitan City Taxes (hereinafter referred to as "City tax").
- Article 3 (Collection Subsidies)
- Where 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 17
- ① of the Act collect City taxes and pay them to the Busan Metropolitan City, the Busan Metropolitan City Mayor (hereinafter referred to as "Mayor") shall grant, as collection subsidies for City taxes, the amount calculated by applying the rates of subsidies referred to in Article 24
- ② of the Enforcement Decree of the Local Tax Collection Act on the basis of payment record (excluding local education tax) at the end of each month, to the head of a Gu by the last day of the following month.
- Article 4 (Exemplary Taxpayers Subject to Suspension of Disposition for Arrears)
- The phrase "exemplary taxpayer determined by municipal ordinance" referred to in Article 105 ① 1 of the Act, means an exemplary taxpayer under subparagraph 2 of Article 2 of the Busan Metropolitan City Ordinance on Honorable Treatment and Support of Exemplary Taxpayers.
- Article 5 (Announcement of selection of professional selling agency)
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① The Mayor shall recruit and select institutions eligible for selection as specialized sales institutions under Article 103-3 ① of the Act (hereinafter referred to as "specialized sales institutions") from among institutions that meet all of the following requirements and publicly announce them on the Busan Metropolitan City newsletter and the Busan Metropolitan City Internet webpage:
- 1. During the two years immediately preceding the year in which the date of announcement falls, the number of sales of works of art (hereinafter referred to as "works of art") pursuant to Article 103-3 ① of the Act through auction shall be sold at least 10 times annually;
- 2. It has to be possible to sell using an information and communication network (refers to an information and communication network pursuant to Article 2, paragraph 1, paragraph 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).
- ② A business operator who intends to be selected as a specialized sales institution shall submit the following documents by the announced deadline for receipt:
- 1. Application form for a specialized sales agency for artworks, etc.;
- 2. Proposals for sales agency business;
- 3. Requirements under each subparagraph of paragraph ① and other documents that can prove the expertise of the sale and the ability to perform the sale business.
- ③ If there is an omission in the documents submitted pursuant to paragraph②, the mayor may set a deadline of 7 days to supplement or require the submission of documents, and if they are not submitted by the deadline for requesting supplementation, the mayor shall examine only the documents originally submitted.
- ④ The mayor may request data to verify the contents of the documents, or may confirm the place of business, etc.
[This Article Newly Inserted on May 29, 2019]
[The former Article 5 moved to Article 16
]
- Article 6 (Examination Procedure and Examination Method of Professional Selling Institutions)
- ① When examining a target institution that can be selected as a professional selling agency, the mayor shall divide the examination into a first round of document examination that examines the requirements of each subparagraph of Article 5 ① and a second round of examination for businesses that have passed the first round of examination, which evaluates their expertise and ability to perform sales work by the Busan Metropolitan City Local Tax Review Committee (hereinafter referred to as the "Committee") pursuant to Article 147
- ① of the Basic Law on Local Taxation.
- ② In the first round of examination, the head of the department in charge of collecting arrears shall verify and select a business operator that meets the requirements of each subparagraph of Article 5 ①.
- ③ In the second round of examination, the committee may select a plurality of specialized selling agencies by evaluating the professionalism (50%) of the sale and the ability to perform the sale business (50%) by reflecting the auction performance, facilities, and capital size.
- ④ The number of business operators selected by a specialized sales agency shall be deliberated and determined by the Committee.
- ⑤ A business operator selected pursuant to paragraph ① may act on behalf of the sale of artworks, etc. for two years from the date of public announcement of the results of selection. [This Article Newly Inserted on May 29, 2019]
- Article 7 (Assessment of Artwork, etc.)
- If necessary to determine the estimated price for sale, a specialized sales institution may request an appraiser or appraisal corporation who has been engaged in the relevant property for at least five years to refer to the value. [This Article Newly Inserted on May 29, 2019]
- Article 8 (Request for cancellation of the sale agency of a specialized sales agency)
- ① If a professional sale agency has auctioned art, etc. requested for sale more than three times, but has not been sold, or if it has not been sold even after one year, the Mayor may request the cancellation of the request for sale.
- ② The Mayor requested pursuant to paragraph ① shall comply with the request for cancellation, except in special circumstances. [This Article Newly Inserted on May 29, 2019]
- Article 9 (Delivery of Property for Sale)
- ① Property kept by the market or a specialized sales agency shall be delivered to the buyer when the buyer pays the sale price (including fees, etc.).
- ② When delivering artworks, etc. to the buyer, he/she shall receive a certificate of acceptance, etc. from the buyer. In such cases, a certificate of acceptance may be substituted by entering the fact of acquisition in the notice of decision to sell and having it signed or sealed.
- ③ Subject to subsection ②, when a professional selling agency delivers artworks to a buyer, it must notify the mayor.
- ④ The time of transfer of ownership of the sold property shall be when the buyer has paid the full amount of the sale price (including fees, etc.) to the professional selling agency. [This Article Newly Inserted on May 29, 2019]
- Article 10 (Receipt of Sale Proceeds)
- ① When a professional selling agency charges the mayor for a sale agency fee pursuant to Article 73-8 of the Local Tax Collection Law Enforcement Regulations, it shall submit details and evidence of the sale amount and the sale agency fee.
- ② If the mayor receives a claim for a sale agency fee pursuant to paragraph
- ③ Subject to subsection ②, when a professional selling agency delivers artworks to a buyer, it must notify the mayor.
- ①, he or she shall confirm whether the sale agency fee is appropriate.
- ③ If the professional selling agency receives the sale payment, the sale agency fee, etc. payable shall be deducted from the sale price and the remaining amount shall be deposited into an account designated by the mayor. [This Article Newly Inserted on May 29, 2019]
- Article 11 (Distribution of Sale Price, etc.)
- ① The Mayor shall determine and distribute the proceeds of the sale received pursuant to Article 10 as the money to be distributed.
- ② The Mayor shall prepare a distribution statement by determining the amount of distribution, order of distribution, etc. pursuant to Articles 97 through 103 of the Act, and notify the taxpayer or interested persons.
- ③ In case the mayor has no objection to the allotment statement, he shall immediately appropriate the arrears in accordance with the allotment statement. [This Article Newly Inserted on May 29, 2019]
- Article 12 (Cancellation of Selection of Specialized Selling Agency)
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① The Mayor may revoke the selection of a specialized selling institution where the selected specialized selling institution falls under any of the following:
- 1. If it is recognized that it is difficult to perform the work of a specialized selling agency due to bankruptcy, bankruptcy, closure or closure of business;
- 2. If it is recognized that it is difficult to perform the work of the professional selling institution due to changes in facilities, capital, etc. at the time of selection of the specialized selling institution;
- 3. In case of social scandal due to delinquency, violation of the "Tax Offenders Punishment Act", serious criminal acts, etc.
- ② If the selection of a professional selling agency is canceled pursuant to paragraph ①, the mayor shall announce it on the Busan Metropolitan Times and the Busan Metropolitan City Internet webpage. [This Article Newly Inserted on May 29, 2019]
- Article 13 (Consultation with Specialized Selling Organizations)
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① A specialized selling agency may deal with the following matters not stipulated in laws or ordinances regarding the sale of works of art, etc., in consultation with the mayor:
- 1. When excessive expenditure of delinquent disposal expenses is expected compared to the estimated sale value;
- 2. When there is no profit from the sale of artworks, etc.;
- 3. When deemed necessary for other sales agencies.
- ② When a specialized selling agency requests consultation under paragraph ①, the mayor shall consult within 20 days.
- ③ When the mayor intends to cancel the request for sale for the reasons described in paragraph ① as a result of the consultation pursuant to paragraph ①, the mayor shall notify the professional selling agency, the taxpayer and the interested party. [This Article Newly Inserted on May 29, 2019]
- Article 14 (Confidentiality, etc.)
- A person who becomes aware of the taxpayer's tax information in the course of the sale agency shall not provide or divulge it to others or use it for any purpose other than that purpose. [This Article Newly Inserted on May 29, 2019]
- Article 15 (Liability for Compensation)
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If the professional sales agency causes damage due to intent or negligence in handling the sales agency business, the damage shall be compensated.
[This Article Newly Inserted on May 29, 2019]
Article 16 (Enforcement Rules)
Matters necessary for enforcing this Ordinance shall be prescribed by Rules.
[The former Article 5 moved to Article 16
]
Addenda
- Article 1 (Enforcement Date)
- This Ordinance shall enter into force on the date of its promulgation.
- Article 2 (General Transitional Measure)
- ① The former Busan Metropolitan City Framework Ordinance on City Taxes shall apply to the City taxes imposed or to be imposed pursuant to such former Ordinance before this Ordinance enters into force.
- ② Regarding the collection of City taxes, any acts conducted by or regarding the Mayor pursuant to the former Busan Metropolitan City Framework Ordinance on City Taxes shall be deemed acts conducted by or regarding the Mayor pursuant to this Ordinance.
- Addendum <Aug. 10, 2022>
- This Ordinance shall enter into force on the date of its promulgation.
