National Tax Service, "Monitoring Small Transfers with AI" Launches Fact-Check on Fake News

Rumors have rapidly spread through social media and YouTube stating, "From August 1st, the National Tax Service's artificial intelligence (AI) tax investigations will begin, and if you transfer over 500,000 won to family or friends, you will immediately face a gift tax investigation and receive a tax bomb." In response, the National Tax Service has launched a fact-check on this false information.

The National Tax Service clearly stated in an official position on the 12th, "The rumors that the National Tax Service is monitoring individual financial transactions using AI or imposing taxes for small transfers between family members are completely false."

They also emphasized, "Expenditures that are directly spent for purposes generally accepted in society, such as medical expenses, living expenses of dependents, and educational expenses, are not subject to gift tax."

This fake news seems to have originated from the National Tax Service's announcement of the introduction of 'AI tax investigations.' However, the actual AI tax investigation is not about monitoring small transactions between individuals.

The AI tax investigation introduced by the National Tax Service will utilize numerous tax investigation cases accumulated over time to train the artificial intelligence, analyzing basic materials such as financial statements and extracting points of tax evasion suspicion.

How will the gift tax criteria for family gifting be applied?

The claim that all small transactions between family or friends are subject to gift tax is also not true.

According to the gift tax criteria, minor children under 19 years of age can receive up to 20 million won tax-free from their parents over a period of ten years.

For adult children over 19 years old, there is no need to pay gift tax even if they receive up to 50 million won over ten years.

Furthermore, basic expenditures recognized as socially acceptable, such as living expenses, educational expenses, and medical bills, as well as congratulatory gifts for admissions or graduations and New Year's money, are also exempt from gift tax. This is important information that alleviates the public's anxiety regarding routine monetary transactions among family members.

However, the National Tax Service explained that funds received under the guise of pocket money or living expenses may fall under gift tax if they are saved in fixed deposits or used to purchase assets such as stocks, land, or housing. This is because the actual purpose of the funds is deemed to be for asset accumulation rather than living expenses.

This fact-check by the National Tax Service can be seen as a measure to alleviate unnecessary anxiety among the public due to misinformation about AI tax investigations and gift tax, providing accurate tax information.

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