공익법인 투명성 확보를 위한 결산서류 등의 공시 개선방안 = Improvement of Disclosure Transparency in Public Interest Corporations

다국어 초록 (Multilingual Abstract)

This study proposes recommendations to improve the disclosure transparency of the National Tax Service Form 31 “Return of Public Interest Corporations” and related information. As public interest corporations pursue, precisely, the public interest, it is important to secure their transparency. Accordingly, the Korean government issued the Accounting Standards for Public Interest Corporations to ensure transparency. Since 2020, in accordance with Article 50-3 of the Inheritance Tax and Gift Tax Act, all public service corporations, except religious organizations, are required to file Form 31 electronically in Hometax by the fourth month after the organization’s accounting period ends. However, the “Short-Form Return of Public Interest Corporations” can be used instead of the “Return of Public Interest Corporations” for organizations with total assets < 500 million won and gross receipts < 300 million won. Penalties can be imposed if organizations file their returns late or if the filing is incomplete. Earlier discussions on the improvement of public interest corporations’ transparency contributed to the enactment of the Accounting Standards for Public Interest Corporations and the expansion of mandatory disclosure in Form 31 and mandatory audits. Kim et al. (2013) examined the current status and problems of accounting standards, external audits, governance and internal control systems, accessibility of information for information users, and the accounting system, and suggested an improvement plan. Further, Jeon (2018), focusing on accounting standards, audits, and disclosure of non-profit organizations, also proposed preparing unified accounting standards for non-profit organizations, expanding mandatory disclosure in forms and audits, establishing and improving internal control systems, enhancing the accessibility of information, and tightening failure-to-file penalties. Park et al. (2014) and Park et al. (2015) analyzed public interest corporations running social welfare businesses. Specifically, Park et al. (2014) examined forms’ disclosure and suggested that it is necessary to reduce the occurrence of incomplete returns and enhance the mandatory disclosure of audit reports. Further, Park et al. (2015) conducted a survey of stakeholders of public interest corporations to understand the current status of the internal control system and find ways to improve it. However, despite these improvements, the following problems remain: Public interest corporations face difficulties in filing returns due to inaccurate classification codes or lack of instructions for specific forms; consequently, it is also difficult for users to obtain useful information. Additionally, the following problems exist regarding disclosure policy: frequently amended returns that are not monitored, failure to complete filing, lack of consolidated information, a need to expand external audit, and lack of charity evaluators such as the Charity Navigator and Candid (GuideStar). Moreover, regarding Form 13, there is a need to improve the classification code by referring to the International Classification of Non-Profit Organizations, disclose program service revenue and program service expenses in Schedule 1 of Form 31, disclose audit committee and related parties, and disclose the compensation of officers and highly compensated employees. Lastly, it is necessary to clarify the purpose of disclosure, change the perception that disclosure is for supervision or monitoring, and establish that it is intended to help public interest corporations carry out their mission. Finally, it is also important to propose a way to alleviate public interest corporations’ disclosure burden. We expect that the recommendations of this study will enhance public interest corporations’ disclosure transparency. As increased accounting transparency increases donor trust, it may promote the revitalization of donation culture and contribute to the achievement of public interest corporations’ mission.