South Korea Seizes $28.4m in Crypto from Tax Dodgers
The National Tax Service (NTS) of South Korea has confiscated cryptoassets worth $28.4 million from citizens who were attempting to evade taxes. The number of “crypto tax dodgers” has increased from 5,741 to 10,849, according to data obtained through a freedom of information request. The NTS has partnered with local tax offices to crack down on individuals who hold crypto and avoid paying taxes. Offenders have the option to pay their outstanding tax bills and fines or have their tokens liquidated and sold by the NTS.
Tax Dodging on the Rise
In the past financial year, the number of “crypto tax delinquents” nearly doubled, with 5,108 offenders identified. South Koreans currently do not pay tax on their crypto earnings, but the NTS suspects that many individuals have been using crypto as a means to hide their income and evade taxes.
Challenges and Solutions
The NTS has recently acquired blockchain monitoring tools to aid in its crackdown on tax evasion. However, it faces challenges when it comes to liquidating seized coins due to legal hurdles. The tax authority plans to revise relevant laws in order to resolve this issue in the future.
Hot Take: South Korean Tax Body Seizes $28.4m Worth of Crypto from Tax Dodgers
The National Tax Service of South Korea has taken decisive action against individuals attempting to evade taxes through cryptoassets. With an increasing number of “crypto tax dodgers,” the NTS is cracking down on offenders and giving them the choice between paying their dues or forfeiting their tokens. While challenges remain in liquidating seized coins, the NTS is determined to revise laws and find solutions. This move reflects the government’s commitment to ensuring tax compliance in the crypto industry and preventing individuals from using digital assets to hide their earnings.
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