Preventing secondary damage from ‘charter fraud’… Paying the tenant’s security deposit before the estate tax

The government has started to amend the law to prevent the loss of the Jeonse deposit due to unpaid taxes that occurred without the tenant’s knowledge.

The Ministry of Strategy and Finance announced on the 28th that it is pushing for revisions to the Basic National Tax Act and the National Tax Collection Act to prevent landlords from paying rents as deposits for taxes, such as general real estate tax.

When a house is sold by auction or public sale, in principle, the sale proceeds can be distributed in the earliest order by comparing the legal date of national tax and the date of establishment of the lease right. However, the so-called relevant taxes such as property tax, comprehensive real estate tax, inheritance/gift tax, etc., which are directly imposed on property, have been made to be paid prior to deposits or mortgages regardless of the statutory date. Due to the tax payment that the auction house sells for less than the delinquent tax plus the Jeonse deposit, the deposit that the tenant will receive will decrease. Victims of the charter fraud will suffer secondary damages in which the landlord will pay back the tax arrears on their behalf.

Accordingly, the government decided to amend the law so that the amount of the distribution of taxes imposed after the fixed date of the lease right in the event of an auction or short sale is distributed to the tenant’s deposit. Tenant deposits are prioritized over property taxes. However, if there is already arrears of national tax before the tenant’s fixed date, priority is maintained over the deposit. Maintain the existing repayment ranking of the bank’s mortgage.

Method of applying the tax priority exception (provided by the Ministry of Strategy and Finance)

For example, if the statutory due date is later than the tenant’s final date of payment of 200 million won in tax, 300 million in mortgage, and 300 million in deposit, if the house is auctioned at 500 million won, the tenant’s deposit may not be protected. this is big If the ranking is changed according to the amendment, the tenant can receive a deposit of 200 million won, which is equivalent to the size of the tax, with the highest priority. Since the bank’s mortgages are ranked, they are protected in the seniority only by the amount of unpaid taxes.

The Ministry of Strategy and Finance explained, “Only the right to preferential tax repayment is attributed to the housing rental deposit, and the lessor’s tax arrears does not disappear. did.

The effectiveness of the non-payment national tax inspection system will also be strengthened. According to the current law, it is impossible to apply for inspection of unpaid tax without the consent of the lessor, and national tax can only be viewed at the tax office where the real estate is located. According to the Ministry of Strategy and Finance, the number of unpaid national taxes perusal with the consent of the lessor is only about 100 per year.

The government plans to amend the National Tax Collection Act to allow inspection of unpaid tax without the consent of the lessor during the period from the date of the rental agreement to the start of the lease. The lessee can apply for inspection of unpaid tax with the lease agreement, and the tax office is required to notify the lessor of the inspection. In addition, it will be changed to allow inspection of unpaid national tax not only at the local tax office but also at the national tax office.

However, in order to prevent excessive infringement of the lessor’s personal information, only the lessee with a deposit exceeding a certain amount can read without consent. He explained that this is a measure considering that deposits below a certain amount will be reimbursed with the highest priority in accordance with the Housing Lease Protection Act. The specific amount shall be determined by the Enforcement Decree.

Reporter Dahyun Choi [email protected]

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