The government's Tax Commission is to begin today studying ways of introducing a controversial system that would assign identification codes to taxpayers, commission sources said Wednesday.
The proposed identification system, to be applied to both individuals and companies, would make it easier for authorities to collect taxes at a time when financial transactions are becoming more complicated and electronic commerce is expanding, they said.
Under the system, taxpayers would be assigned identification numbers and would be required to present them when making transactions with financial institutions.
The system would enable tax authorities to more efficiently track down the financial transactions of taxpayers, ensuring proper and timely tax payments.
The identification system has so far received a lukewarm response due to concerns that it might be abused, resulting in the dispersal of private information.
The commission decided to take up the issue because a new privacy protection law is in the works, the sources said.