Tax Disputes and Appeals: How to Challenge a Tax Decision

1) Pre-assessment review (before tax is imposed)

When: After a written audit result or advance notice of taxation is received.
What: Ask the authority to judge the legality of the proposed assessment.
Deadline: File within 30 days of receiving the notice.
Where: Head of district tax office, regional NTS, or NTS Commissioner.
Effect: Defers final determination/correction until the review is concluded.

Why start here? It’s faster, cheaper, and can stop an improper assessment before it’s finalized.

2) Formal appeals ladder (administrative)

A) Objection (이의신청)

When: After a final disposition (assessment/correction) is issued.
Deadline: Within 90 days from the day you became aware of the disposition.
Where: Head of the relevant tax office or regional NTS office.
Decision: Typically within 30–60 days after receipt (via review committee).

You may proceed to a higher stage if the objection result is unfavorable or if you choose to skip this step.

3) Examination vs. Judgment (NTS vs. Tax Tribunal)

Choose one of the two high-level reviews within 90 days from awareness of the disposition (or objection decision):

Route	Filed to	Notes
Request for Examination (심사청구)	National Tax Service (NTS)	Reviewed by the NTS Review Committee for National Tax Appeal.
Request for Judgment (심판청구)	Tax Tribunal	Independent body under the Prime Minister; handles most tax appeals.

Heads-up: Some cases may also be taken to the Board of Audit and Inspection, but duplicate filings are not allowed—pick one main path.

4) Administrative litigation (3-tier courts)

Mandatory pre-review: Before suing, you must have gone through NTS/Tax Tribunal (or Board of Audit) review.
Court tiers: ① Administrative Court → ② High Court → ③ Supreme Court.
Outcome: Courts may uphold, revoke, or remand the disposition; interest/penalties may be adjusted accordingly.

Strategy: Build the record early—arguments, facts, expert opinions—because litigation relies heavily on the administrative file.

5) Fixing your own return (correction/revise/late)

Request for Correction (경정청구): If you overpaid, request a downward correction—generally within 5 years from the statutory due date.
Revised Return (수정신고): If you underpaid, file a revised return to reduce penalties and show good faith.
Late Filing (기한후신고): If you missed the deadline, you can still file before the authority determines tax; filing within 1 month (or up to 6 months) may qualify for penalty abatements.

Documentation: Keep calculations, invoices, contracts, and bank proofs aligned with your claim—these are critical in both corrections and appeals.

6) Quick timeline & who/where

Stage	Deadline	Filed with	Key effect
Pre-assessment review	Within 30 days of notice	Tax office / Regional NTS / NTS	Defers final assessment while reviewed
Objection	Within 90 days of disposition awareness	Tax office / Regional NTS	First administrative appeal
Examination or Judgment	Within 90 days of decision/awareness	NTS / Tax Tribunal	High-level administrative review
Litigation	After administrative review	Administrative Court	3-tier judicial process

7) Common mistakes & quick checks

Deadline misses: 30-day (pre), 90-day (objection/exam/judgment) limits are strict—calendaring is essential.
Wrong venue: Filing the wrong route or duplicating filings; choose one higher route (NTS or Tax Tribunal).
Thin evidence: Assertions without contracts, invoices, or banking trails rarely succeed.
Skipping pre-assessment: Passing up the fastest fix that could avoid an assessment altogether.

Quick prep: Build a “case file” early—facts memo, law points, chronology, and exhibits index. It pays off at every stage.

8) Summary & next steps

Start with pre-assessment review to stop issues early.
Use the administrative ladder: Objection → Examination (NTS) or Judgment (Tax Tribunal).
Litigation is available after administrative review; prepare the record from day one.
Fix your own errors via correction, revised, or late filings to manage risk and penalties.

Series complete! You’ve covered Corporate Tax, VAT, Personal Income, International Rules, Asset Taxes, Compliance, and Appeals with KRTaxPolicy. 🎉

9) Disclaimer

This guide is general information, not legal or tax advice. Rules and timelines may change; consult a professional for your specific facts.

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