Basic Report

  
  
    The purpose of this study is to provide an efficient local tax administration system, which includes minimizing the tax administration cost as well as the taxpayers' compliance cost. In order to investigate the local tax administration system, the local tax imposition and collection procedures, taxation organizations and manpower, which are the most important parts of tax administration, have been examined thoroughly.
   The problems have been found not only through literature reviews but also through interviews with various local government officials in charge of local tax administration. The problems of the current tax adminstration system includes the following. First, the stiffness of taxation organizations, inflexible tax imposition and collection procedures, inconvenient tax payment procedures are the problems mostly related with efficiency. Second, the local tax administration manpower is generally inferior to its national counterpart due to frequent personnel movement and extensive workload compared to its size. Last, there is a lack of shared information between the national and local tax administration.
   Based on these problems, this study proposes the following recommendations. First, for the sake of taxpayers' convenience, this study recommends empowering the national tax authority for collecting the local resident tax (income base), and giving the choice of receiving tax bill address to the tax payer. It further recommends the incentive system for loyal tax payers and various tax payment systems including credit card payments. Second, to minimize the tax administration cost, the improvement of delinquent tax management systems, the replacement of the capital gained tax calculation, the efficient management of tax administration and personnel have been suggested. Last, for the improvement of local tax administration, the non-housing property tax base appraisal system and sharing of information between the national and the local government are strongly recommended.