(1) The Commissioner of the National Tax Service may pay a monetary award within the extent of two billion won to any of the following persons (four billion won to a person who falls under subparagraph 1 and three billion won to a person who falls under subparagraph 2): Provided, That the amount collected through the report of tax evasion, illegal tax refund or deduction or concealed property or an administrative fine for a failure to perform the obligation to report on the overseas financial account comes short of the amount set by Presidential Decree, or where a public official has provided data in connection with his or her duty or has reported on concealed property, no monetary award shall be paid: <Amended on Dec. 31, 2011; Jan. 1, 2013; Jan. 1, 2014; Dec. 23, 2014; Dec. 20, 2016; Dec. 19, 2017; Dec. 22, 2020; Dec. 21, 2021>
1. A person who provides critical materials in calculating the tax evasion or the illegally refunded or deducted tax amount;
2. A person who reports concealed property of a delinquent taxpayer;
3. In any of the following cases, a person that reports on a credit card merchant (referring to a credit card merchant that has joined as a credit card member store under the Specialized Credit Financial Business Act pursuant to Article 162-2 (1) of the Income Tax Act) that has engaged in any of the following acts: Provided, That where the amount of transaction that is liable for settlement by credit card (including those similar to a credit card, as prescribed by Presidential Decree; hereinafter in this Article, the same shall apply) is 5,000 won or less, such amount shall be excluded herefrom:(a) Where a customer makes a request for settlement by credit card but the credit card member store has rejected such request;(b) Where the credit card member store issues a credit card sales slip (including those prescribed by Presidential Decree, as similar to credit card sales slips) containing a description different from the true facts, as prescribed by Presidential Decree;
4. In any of the following cases, a person who reports on a cash receipt merchant (referring to a member store of cash receipt service under Article 126-3 (1) of the Restriction of Special Taxation Act) that has engaged in any of the following acts: Provided, That where the amount of transaction subject to the issuance of cash receipt (hereinafter referred to as a "cash receipt") pursuant to Article 126-3 (4) of the Restriction of Special Taxation Act is 5,000 won or less, such amount shall be excluded herefrom:(a) Where a cash receipt merchant refuses to issue a cash receipt;(b) Where a cash receipt merchant issues a cash receipt differently from the actual facts, as prescribed by Presidential Decree;4-2. A person who reports any person who violates his or her obligation to issue cash receipts under Article 162-3 (4) of the Income Tax Act or Article 117-2 (4) of the Corporate Tax Act;
5. A person who reports on any person operating business under another person’s name;
6. A person who provides important data for uncovering any violation of the obligation to report overseas financial account under Article 53 of the Adjustment of International Taxes Act;
7. A person who declares financial assets as defined in subparagraph 2 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality, which are held by any of the following enterprisers under another person’s name:(a) A corporation;(b) A person subject to double entry bookkeeping.
(2) The critical materials referred to in paragraph (1) 1 and 6 shall be described as follows: <Amended on Dec. 31, 2011; Jan. 1, 2013; Dec. 31, 2018; Dec. 31, 2019; Dec. 22, 2020>
1. In cases falling under paragraph (1) 1: Any of the following items:(a) Materials or books that contain specific facts about the place of transaction, the date or period of transaction, the items and amount of transaction, etc. that helps to confirm the details of tax evasion or illegal tax refund or deduction (excluding those for which a tax investigation (including an investigation of tax offense under the Procedure for the Punishment of tax Offenses Act) is being conducted at the time of submission of the materials or books; hereafter in this Article, referred to as "materials");(b) Specific information that helps to locate any material equivalent to that referred to in item (a);(c) Other materials prescribed by Presidential Decree, as worthy under the circumstances such as methods, details and scale, etc., of tax evasion and unjustified tax refund or deduction;
2. In cases falling under paragraph (1) 6: Materials usable as ground for the imposition of administrative fines under Article 62 of the Adjustment of International Taxes Act or for punishment under Article 16 of the Punishment of Tax Offenses Act, by providing information on overseas financial accounts under subparagraph 3 of Article 52 of the Adjustment of International Taxes Act.
(3) The term "concealed property" in paragraph (1) 2 means cash, deposits, stocks and other tangible or intangible properties having property value, which are concealed by a tax delinquent: Provided, That the property falling under any of the following subparagraphs shall be excluded: <Amended on Jun. 9, 2020; Dec. 22, 2020; Dec. 29, 2020>
1. The property that is subject to litigation for revocation of fraudulent act pursuant to Article 25 of the National Tax Collection Act;
2. The property of which a tax official initiated an investigation or a procedure for forced collection, with a knowledge of concealment thereof;
3. Other concealed property of tax delinquents deemed as unnecessary to be reported, which is prescribed by Presidential Decree.
(4) A person shall provide data or make a report under the subparagraphs of paragraph (1) in writing, by fax, via an automated phone answering system, or the website. In such cases, data or a report shall satisfy all the following requirements: <Amended on Dec. 15, 2015; Jun. 9, 2020>
1. A person shall mention or state his or her name and address;
2. A person shall affix his or her signature (including digital signature (referring to one through which the real name of a person who has affixed his or her signature can be identified) under subparagraph 2 of Article 2 of the Digital Signature Act), or seal, or verify his or her identity through authentication;
3. A person shall submit evidential data, etc. objectively verified.
(5) No public officials in charge of the affairs related to the payment of monetary awards under paragraph (1) shall use matters related to report or information, such as identification of a reporter or informant, for any purpose other than the originally intended purposes, nor provide or divulge them to other persons.
(6) Necessary matters concerning standards and methods for paying a monetary award and the period for filing reports under paragraph (1), and methods for filing reports and the submission of evidential data under paragraph (4), shall be prescribed by Presidential Decree. <Amended on Dec. 15, 2015>[This Article Wholly Amended on Jan. 1, 2010]