[Edaily Reporter Park Jung-Soo ] Hyulim Networks(192410)has received a decision to revoke the original assessment for approximately 80.3 billion won in taxes imposed by tax authorities under the first and third assessments. With more than 70% of the total tax dispute resolved, the company plans to focus on improving its financial structure and expanding its global business while continuing to address the remaining litigation.
ONEUL E&M announced on the 1st that, following the cancellation of the first assessment of approximately 29.6 billion won by the Seoul Regional Tax Office, it had also received notice of the full cancellation of the third assessment of approximately 50.7 billion won imposed by the Yeongdeungpo Tax Office. The combined amount of the two assessments totals approximately 80.3 billion won.
Previously, tax authorities had determined that ONEUL E&M’s sales and purchases related to its travel business from 2018 to 2023 constituted fictitious transactions and assessed approximately 110.4 billion won in VAT and surcharges in three separate assessments.
In accordance with the Tax Tribunal’s decision to reexamine the case, the company had been seeking a reexamination of the first and third assessment decisions. With the cancellation of these original assessments, the tax assessments totaling 80.3 billion won—representing approximately 72.7% of the total amount in dispute—have been resolved.
However, not all tax-related disputes have been resolved. A lawsuit seeking to invalidate the second assessment of approximately 30.1 billion won, issued by the Namdaemun Tax Office, is currently underway.
The company expects this decision to have a positive impact on the upcoming litigation, as the second assessment also involves disputes related to the same tax period and transaction structure as the first and third assessments that were recently revoked.
ONEUL E&M plans to improve its financial structure by reflecting the financial impact of this cancellation, while also accelerating the expansion of its domestic and international businesses. In particular, the company intends to expand new business opportunities, focusing on the global telecommunications network market, including the United States.
An official from ONEUL E&M stated, “We have reduced external uncertainty by bringing these tax issues to an early resolution and improving our financial soundness,” adding, “Building on the business foundation we have established in the U.S. market, we will accelerate our entry into the global telecommunications network market and enhance our corporate value.”