The South Korean authorities appear to be focused on strengthening anti-tax evasion policies across the country. The country’s tax watchdog unveiled thousands of runaways that relied on cryptocurrencies to hide assets worth billions of Korean won.
Evader’s total hidden assets totaling $ 32.24 million
According to the Korea Herald, the National Tax Service of South Korea (NTS) identified 2,416 people who reportedly had their assets hidden in cryptos to avoid taxation. The agency stated that outliers used Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), among others, in order not to be audited by the tax authorities.
According to officials, the total assets involved in the tax evasion totaled 36.6 billion won ($ 32.24 million). The NTS also made it clear that it was primarily aimed at people who owed taxes in excess of 10 million won ($ 8,800).
Still, the tax authorities managed to win back hidden assets in cash and bonds. At the same time, they opened an investigation into 222 people who allegedly evaded tax payments. The agency made the following statement:
The latest investigation was part of our ongoing efforts to step up the crackdown on anti-social tax evasion. We will capture highly intellectualized cases (tax evasion) and quickly redeem their hidden characteristics.
Domestic crypto exchanges partnered with the NTS
The NTS stated that they relied on domestic crypto exchanges to collect personal information from the alleged tax evaders. It contained trade reports and banking information from individuals in full compliance with the stringent regulations currently governing the cryptosphere in South Korea.
By law, South Korean crypto exchanges are required to use the real name system by partnering with a financial institution to provide this service.
Banks are required to conduct a customer due diligence on the crypto businesses they are dealing with to ensure proper reporting to the Korea Financial Intelligence Unit (KOFIU).
Bitcoin.com’s news desk reported that the South Korean government had issued an amendment to introduce a 20% tax on profits from trading cryptocurrencies.
Although it was passed in February, legislators made it clear earlier this year that the new regulation will come into effect from 2022.
What do you think of the recent crackdown on tax evaders in South Korea? Let us know in the comments below.
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