South Korean and Cambodian tax authorities are stepping up cooperation on cross-border information sharing tied to tax crimes and financial assets as they seek to trace proceeds concealed overseas.
South Korea’s National Tax Service said Monday that NTS Commissioner Lim Kwang-hyun and Kong Vibol, head of Cambodia’s General Department of Taxation, signed a memorandum of understanding on the exchange of information for tax purposes during a meeting in Phnom Penh on Thursday.
The agreement formalizes an understanding reached in Seoul in January and is intended to help the two sides share tax-related data, including financial asset information linked to tax evasion, more quickly and accurately, the NTS said.
Marking the fifth commissioners’ meeting between the tax authorities of Korea and Cambodia, Thursday’s talks focused on expanding cooperation in tax administration, including strengthening information exchanges, coordinating tax crime investigations and improving administrative support for Korean companies operating in Cambodia.
The NTS said both sides agreed that closer cooperation had become more important as offshore tax evasion grows more sophisticated, including efforts to conceal criminal proceeds abroad and launder money through virtual assets.
During the talks, the two commissioners also shared their latest experiences in handling tax crime investigations. Lim introduced cases involving the destruction of accounting records and income shifting through overseas paper companies, while follow-up procedures such as criminal accusations drew particular interest from Cambodian officials, the NTS said.
Lim also met representatives from the Korean Chamber of Commerce and major Korean companies operating in Cambodia during his visit. He relayed their concerns to Cambodian authorities, including delays in value-added tax refunds, and requested continued administrative support for Korean companies. Kong pledged active cooperation in response, according to the NTS.
jwc@heraldcorp.com
