1. Reasons for Amendment

  It stipulates that when a delinquent person dies or a delinquent corporation is extinguished due to a merger, a disposition for arrears may be taken on the inherited property or the surviving corporation; a certificate proving that all local administrative penalty charges have been paid, shall be submitted even when the payment is received from the state institutions or government agencies. A basis for entrusting the head of the customs house with the disposition for arrears on imported goods of high or habitual delinquents, shall be newly established and at the same time, an explicit basis for a payment by a third party on behalf of the payer shall be created. In addition, for provisions applicable to mutatis mutandis such as the National Tax Collection Act regarding procedures for disposition for arrears, the terms that need to be changed shall be separately defined.

2. Major Provisions

A. Improvement of unclear rules related to the collection process for tax arrears

1) Stipulates that a payment may be made by a third party on behalf of the payer (Article 7(8) newly inserted).

2) Clarifies the grounds for the disposition for arrears on inherited property or surviving corporations (Article 9 (3) and Article 9 (4) newly inserted, and Article 19 amended) to avoid inconsistent succession according to interpretation due to lack of requirements for succession.

3) For provisions applicable to mutatis mutandis such as the National Tax Collection Act regarding the procedures for disposition for arrears, the terms that need to be changed shall be separately defined (Article 19 amended).

B. Expansion of the Institutions Subject to Submission of a payment certificate of local administrative penalty charges (Article 7 (6) amended)

Stipulates that a payment certificate proving that there are no local administrative penalty charges, shall be submitted even when a payment is made not only by local governments but also by the state institutions or government agencies.

C. Establishment of a new basis for entrusting disposition for arrears on imported goods of high or habitual delinquents (Article 18 (2) newly inserted)

Stipulates the establishment of a new basis on which the head of a local government may entrust the head of a customs office to disposition for arrears on imported goods of high or habitual delinquents whose local administrative penalty charges amounted to 10 million won or more after one year from the date of delinquency.