(1) Where a resident liable to file a final return on the tax base under Articles 70, 70-2, 71, and 74 fails to file such final return, the head of a tax office or the commissioner of a regional tax office having jurisdiction over the place for tax payment shall determine the tax base and tax amount of the resident in the relevant taxable period. <Amended by Act No. 11611, Jan. 1, 2013>
(2) Where a person who files a final return on the tax base under Articles 70, 70-2, 71, and 74 (including any person who fails to file a final return on the tax base pursuant to Article 73 in cases falling under subparagraph 2 or 3) falls under any of the following cases, the head of the tax office having jurisdiction over the relevant place for tax payment or the commissioner of the relevant regional tax office shall correct the tax base and tax amount for the relevant taxable period: <Amended by Act No. 10408, Dec. 27, 2010; Act No. 11611, Jan. 1, 2013; Act No. 12169, Jan. 1, 2014; Act No. 13558, Dec. 15, 2015>
1. Where an omission or error exists on the return;
2. Where an omission or error exists in any detail of income tax withheld under Article 137, 137-2, 138, 143-4, 144-2, 145-3, or 146 and it is deemed impracticable to collect the tax from the withholding agent due to the permanent closure of business, unknown whereabouts, etc. of the withholding agent or the withholding agent is unable to collect withholding taxes due to resignation of the relevant wage and salary income earner;
3. Where a person who has submitted a return on income deductions and tax credits for wage and salary income under Article 140 has any global income deduction or tax credit by any fraudulent means specified by Presidential Decree, such as false receipts, and it is deemed difficult for the withholding agent to ascertain such fraudulent deduction;
4. Where a person fails to submit all or part of the aggregate table of invoices by purchaser and the aggregate table of invoices by seller pursuant to Article 163 (5) or the statement of payment pursuant to Articles 164 and 164-2;
5. Any of the following cases where it is determined the details of a return are false considering the scale of the facilities and the current status of the business:(a) Where a business entity obliged to use an account for business pursuant to Article 160-5 (1) fails to perform such obligation;(b) Where a business entity obliged to report an account for business pursuant to Article 160-5 (3) fails to perform such obligation;(c) Where a business entity who meets the requirements to become a credit card member store under Article 162-2 (1) fails to join the membership of a credit card member store under the Specialized Credit Financial Business Act without just grounds;(d) Where a credit card member store which has become a member of credit card member stores because it meets the membership requirements under Article 162-2 (2) refuses transactions by credit card without just grounds, in violation of Article 162-2 (2), or issues a credit card sales slip falsely;(e) Where a business entity who meets the requirements under Article 162-3 (1) fails to register as a cash receipt merchant without just grounds;(f) Where a business entity who has registered as a cash receipt merchant pursuant to Article 162-3 (1) fails to issue a cash receipt without just grounds, in violation of Article 162-3 (3) or (4), or issues it falsely.
(3) Where the head of a tax office or the commissioner of a regional tax office having jurisdiction over the place for tax payment determines or corrects the tax base and tax amount of the relevant taxable period pursuant to paragraphs (1) and (2), he/she shall determine or correct them based on books of account and other evidentiary documents: Provided, That where he/she is unable to calculate the amount of income by books of account and other evidentiary documents, due to reasons prescribed by Presidential Decree, he/she may estimate, investigate, and determine the amount of income, as prescribed by Presidential Decree.
(4) Where any omission or error is found after the determination or correction of the tax base and tax amount, the head of a tax office or the commissioner of a regional tax office having jurisdiction over the place for tax payment shall immediately correct such tax base and tax amount.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]