Lee says that his wife managed the rent fees, and that since a tax accountant handled his taxes he has no knowledge of what transpired. A renter who lived in the building, however, said that Lee coaxed him into reporting the rent to be W1 million when it varied between W3.5 million and W4 million a month. In other words, the taxes went unpaid not because of a mistake, but by intention.
The excuse about having left an accountant to report his earnings does not excuse Lee from responsibility. He is reportedly an expert in tax law, and wrote many articles about tax litigation back when he was a regular judge. Who is supposed to believe him when he says his tax accountant was underreporting his taxes and that he didn't know about it for ten years? It was lacking of a sense of shame when he tried to pay off his former tenant to quiet him the moment the facts about the taxes became apparent in a lawsuit between them.
It is relatively common for the owner of a building to pay less in taxes by underreporting his rent earnings. They say that happens because the tax rate is so high, but in fact the reason is because it is hard for tax officials to catch. The fact that once caught all you have to do is pay what you had not been also encourages that method of tax evasion. But however common it may be, it is still a serious crime. This case of tax evasion must be dealt with decisively so as to make that clear. Lee should stop making less than convincing excuses. The right thing to do would be to resign voluntarily. If he does not, the National Assembly must take the necessary action, including measures such as impeachment.
The Hankyoreh, 27 May 2005.
[Translations by Seoul Selection (PMS)]
