Unreported gifts from parents and excessive asset growth relative to income are triggers for tax audits
Tax audits targeting self-employed people focus mainly on two types of cases, tax attorney Yeom Ji-hoon explained.
The first is when money received as a gift from parents goes unreported. The second is when the increase in assets is judged excessive relative to the self-employed person's reported income. For example, if someone with almost no income has more than 1 billion won in bank deposits, this can become a key point that triggers an investigation by the National Tax Service.
