궁금했던 표현들 #43. 납부가 지연되어 그에 따른 이자가 발생한거야.

#1. 이자는 페널티가 아니라 납부 지연에 따른 조정 같은거야. 

- The interest fee is not a penalty but rather a slight adjustment for the delay in payment of the due taxes.

- The interest fee is not a penalty but rather a compensation for the delay in payment of the due taxes. It is calculated based on the average rate of commercial banks in Seoul, reflecting the cost of borrowing money over the period the payment was delayed.

- Reason for Imposition:
This interest fee is incurred because the payment of taxes was postponed beyond the scheduled deadline. When taxes are paid late, customs needs to account for the time value of money. Essentially, the interest fee covers the financial impact on the government for not receiving the funds on time.

- It is not meant to be punitive but to reflect the actual cost of delayed payments.

- The nature of the interest fee is compensatory, not punitive. It is designed to account for the financial impact of delayed tax payments, reflecting the average rate of commercial banks in Seoul.

 

 

 

#2. 이자가 발생? 이자가 부과? 어떤 동사 써야지?? 

- Impose: This verb is used from the perspective of the authority or entity that is applying the fee. For example, "Customs imposed an interest fee on the late payment."
- Incur: This verb is used from the perspective of the person or entity that has to pay the fee. For example, "The importer incurred an interest fee due to the late payment."

Using both can help explain the situation clearly from both perspectives:
"Customs imposed an interest fee on the late payment, which the importer incurred as a result of the delay."

 

+ levy
"Customs levied an interest fee on the late payment."

 

 

 

#3. Template

   We believe that the interest fee is not a penalty for incorrect entries but is incurred based on the average interest rate of commercial banks.

 

1. The Nature of Interest Fees
   KR Customs imposes minimal interest, assuming that the importer might have benefited from postponing the payment of deficient taxes.
   Please refer to the articles below, focusing on the underlined sections:

 

Customs Act / Article 38-2 (Revision)

(5) Where there still exists a deficiency in the amount of duty after revising the amount of duty in accordance with an application filed pursuant to paragraph (1) and the latter part of paragraph (2), the head of a customs office shall, notwithstanding Article 42, collect the deficient amount of duty by adding the amount computed based on the interest rate prescribed by Presidential Decree in consideration of the period from the date following the due date for payment (referring to due date for payment pursuant to Article 9) to the date on which the application for the revision has been filed, and the interest rate applied to time deposits of financial institutions: Provided, That the foregoing shall not apply in any of the following subparagraphs:

 

Enforcement Decree Of The Customs Act / Article 56 (Determination of Surcharges on Refund of Customs Duties)       

(2) The interest rate on the surcharge referred to in paragraph (1) shall be prescribed by Ordinance of the Ministry of Economy and Finance, taking into account the average interest rate on one year term deposits in any bank authorized to engage in banking business under the Banking Act with its principal office located in the Seoul Special Metropolitan City. (Applied Interest Rate: 3.5% per year)

 

2. Revision vs. Amendment

   The KR Customs Act stipulates two types of declaration corrections – Revision and Amendment – with the key difference being the imposition of penalty tax. Specifically, an “Amendment” made after six months of tax payment incurs an additional 10% penalty tax, while a “Revision” made within six months does not.

   We are aware of this regulation and promptly conducted a “Revision” to avoid incurring the 10% additional penalty tax.

 

3. Conclusion

   We believe that the additional interest fees are not charged due to the broker’s fault but result from the postponement of tax payment. These fees are not a sort of penalty or unfair late fees for ABC but simple interests calculated based on the average interest rate.  

   We hope this explanation helps you understand why the interest fees are incurred and those aren’t caused by EI/Korea’s fault.