On the 22nd, the Gangnam District of Seoul announced that three companies received a tax refund of 32 million won after identifying small and medium-sized enterprises that are estimated to have refundable taxes using artificial intelligence (AI).
Gangnam District first used the legal interpretation function of ChatGPT to automatically estimate whether a company is a small and medium-sized enterprise and supplemented this with the 'Small and Medium-Sized Enterprise Status Verification System.' It then conducted a comprehensive survey of small and medium-sized enterprise tax data to check if any employment support deduction benefits were being missed.
The government allows corporations that add additional employees to exceed 50 to deduct part of the increased personnel costs from the tax base. This is a local government tax reduction system aimed at encouraging job creation and alleviating corporate burdens.
A total of 700 cases suspected of missing benefits were extracted. Then, 176 small and medium-sized enterprises with a high likelihood of receiving deductions were selected, and notices were sent out. As a result, just two weeks after the notice was sent, three companies filed amended tax claims requesting refunds for overpaid taxes, leading to a refund decision of 32 million won.
A Gangnam District official noted, 'Amended tax claims are expected to continue receiving submissions until December, so the number of beneficiary corporations will increase.' Gangnam District stated that all analyses and processing were done internally without sending data outside, thus protecting personal information.
Gangnam District Mayor Jo Seong-myung said, 'This system utilizing generative artificial intelligence is a new innovative model that protects the rights of small and medium-sized enterprises and small business owners facing difficulties.'