There is a plan in the works that would have the state levy taxes on bribes received by elected or high-ranking government officials. They say idea will be part of the bill to revise income tax law, which is supposed to be introduced to the National Assembly's Finance and Economy Committee on Monday. As of last year there are gift taxes that must be paid for illegal political contributions. If the income tax law is revised as well, it will mean a lot of progress in eradicating corruption in our society.
The idea of taxing politicians' bribes is nevertheless controversial.
The first question is whether you can tax income from illegal activity. Tax officials have long held that taxing income from a given activity is recognition of the activity's legality, and one argument against taxing bribes is that doing so would contradict that principle. The global trend, however, is to levy taxes when there is actual income, whether legal or not. Taxing bribes should be possible enough, since Korea already taxes some illegal income, such as income from prostitution.
Another question often asked is how the state can tax bribes that when discovered are usually seized by the government, since seizure means the bribe is no longer "income" for the recipient. This is a question of whether punishment (seizure) and taxation should be treated as separate issues or linked. The issue requires social agreement, since academia, judicial precedent, and tax laws differ on the issue, as do different countries. It would be right to tax bribes, since Korea still has a serious problem with corruption among politicians and high-ranking government officials, and to do so based on strict standards, apart from confiscation.
It looks like there will be intense debate about the bill, with diverse arguments about tax theory and practical considerations. The idea could get buried in a consuming legal debate as that unfolds. The proposal about taxing bribes received by politicians originated out of a desire to facilitate the realization of a transparent society, however, and we would hope that the debate would conclude in a way that is true to the initial aims behind the proposal.
The Hankyoreh, 21 February 2005.
[Translations by Seoul Selection (PMS)]
[Editorial] Levy Taxes on Political Bribes! |
