(1) Where a domestic corporation obliged to submit a statement of retained earnings of a specific foreign corporation under subparagraph 3 of Article 34 of the Adjustment of International Taxes Act (hereafter in this paragraph, referred to as "statement") falls under any of the following cases, it shall submit a penalty tax equivalent to 5/1,000 of the retained earnings, distributable by the specific foreign corporation, in addition to corporate tax: <Amended on Dec. 22, 2020>
1. Where it fails to submit the statement by the deadline for submission;
2. Where the descriptions of a statement submitted are wholly or partially omitted or a statement submitted is found unclear with regard to the descriptions specified by Presidential Decree.
(2) The penalty tax in paragraph (1) shall be collected although the calculated amount of tax is nil.[This Article Added on Dec. 24, 2018]