[Monitor] Most super luxury sports cars registered as company vehicles

By Korea Herald
  • Published : Oct 13, 2017 - 16:34
  • Updated : Oct 13, 2017 - 16:34

Despite a change in taxation on company cars, the practice of individuals purchasing super luxury sports cars under a company’s name to avoid taxes continues to remain rampant, the office of Rep. Shim Ki-joon said in a parliamentary audit.

Citing data from the Korea Automobile Importers and Distributors Association, Rep. Shim said the proportion of such cars registered in company names remains little changed, with some models even showing an increase since the law was revised last year.

Under the current law, the annual tax depreciation for company vehicles is limited to up to 8 million won ($7,080) and requires the car to come with a vehicle log as well as an insurance policy exclusive for executives and staff. 

Rep. Shim said the tax inspection process must be reinforced to prevent cases such as the manipulation of vehicle logs.