1. Overview
“The in-depth evaluation of special taxation” refers to ex-post analyze its performance and reflect findings into the future plan. This report has reviewed the assessment, which was first introduced from 2015, focusing on whether it is designed to have a significant impact on modifying the tax expenditure as initially intended.

2. Analysis on the In-depth Evaluation of Special Taxation in 2015
1) Adequacy of the selection process of evaluation tax expenditures
When some special taxation items subject to evaluation are excluded, related reasons should be specified and disclosed, thus enhancing the transparency of the process of selecting evaluation attributes. Furthermore, it is necessary to consider a measure to include a series of special taxation items, without a specific sunset in the long-run, in the optional in-depth evaluation category.

2) Adequacy of Evaluation Methods (validity and effectiveness)
For the in- depth evaluation, it is essential to identify the objectives of relevant programs, which in turn requires the understanding of intervention logic. Therefore, it is necessary to grasp the intervention logic by performance creation step and analyze the validity and effectiveness of the governmental intervention for each phase. In addition, when a survey is conducted on beneficiaries and an external factor involved affects some findings, it is advised not to interpret them as the effect of special taxation policies. In order to evaluate whether tax expenditure achieves the effect as intended, various methodologies, including cost-effective analysis, should be applied and developed further.

3) Effectiveness of the Assessment
In some cases, the findings of the in-depth evaluation were not reflected in tax amendment bills or no decision was made to scrap the policies with insignificant effectiveness or validity. Evaluation results need to be included in tax amendment proposals to enhance the effectiveness of the in- depth evaluation.

3. Conclusions and Suggestions
In order to help the in- depth evaluation contribute to modifying the tax exclusion and exemption, the selection of evaluation items should follow the guidelines. In addition, proper evaluation methods need to be adopted to assess the validity and adequacy of governmental intervention. The findings of the in-depth evaluation should be reflected in tax amendment bills, and the mid-to long-term special taxation plan needs to be outlined, thus enhancing the conformity of individual taxation policies with the entire taxation and fiscal system.