Cha & Kwon Law Offices advised an individual who received a request from the tax authorities to provide explanations regarding financial transactions and fund transfers, and prepared a written submission setting forth the relevant facts and supporting documentation.

In this matter, the key issues were to objectively demonstrate whether the overseas business was actually conducted and continuously operated, as well as to explain the circumstances and purposes underlying multiple financial transactions. Accordingly, we organized the relevant facts by distinguishing the flow of funds and purpose of each transaction, while focusing on whether the relevant contractual documents were consistent with the financial records and other supporting evidence.

Cha & Kwon Law Offices cross-checked relevant materials, including financial transaction records, contracts, and emails, to clarify the circumstances and purposes of each transaction. We structured the submission around objectively verifiable evidence, including the movement of funds and actual receipt of funds. We also organized materials relating to the overseas business to clearly demonstrate the connection between the transactions and the business activities. Through these efforts, we organized the factual circumstances and supporting documentation so that the tax authorities could clearly understand the substance of each transaction and the background of the fund transfers, while providing guidance on the appropriate approach to the response process.

Cha & Kwon Law Offices provides advisory services for tax authority inquiries by systematically organizing financial transactions and fund flows based on objective supporting documentation and assisting clients in responding to requests for explanations from the tax authorities.