For some Asian countries such as Japan and South Korea, evading cryptocurrency taxes is becoming a hot topic for the authorities. A South Korean city is now actively fighting against tax evaders who suspiciously report meagre income in their declarations.
According to Gugkje News, the authorities in Gyeongju, North Gyeongsang Province are aware of several possible tax evasion cases. According to reports, individuals have hidden money in cryptocurrencies without reporting them to tax authorities.
With the new “Specific Financial Information Act” stipulating to strengthen the monitoring of encrypted exchanges to combat money laundering and tax evasion, Gyeongju City and Gyeongsangbuk Province are cooperating with four domestic exchanges to identify suspected tax evaders.
In fact, it is reported that Bithumb and Upbit provided the data requested by the authorities to analyze possible violations.
As of press time, 511 individuals are being investigated, and part of the parallel investigation is 68 legal entities to check whether they have undeclared encrypted assets.
But this is not a special requirement of the watchdog, because according to the law, cryptocurrency exchanges should always report any suspicious transactions performed through their platforms. However, the city requested an in-depth analysis of these suspected cases.
In addition, the authorities threatened that if violations were discovered, they would seize “collection tokens” from their wallets and confirm that everyone involved in the case was evading taxes.
Gyeongbuk Province hopes to verify whether there is indeed a deficit of 10 million won (US$8,970) due to tax evasion. Gyeongju City Mayor Cho Ra Young commented:
We are engaged in various debt processing work to collect high-quality and high-quality arrears.
South Korea continues to actively combat cryptocurrency tax evasion nationwide
Recently, Bitcoin.com News reported that the National Tax Service (NTS) of South Korea confirmed that 2,416 individuals reportedly conceal their assets in cryptocurrencies to bypass taxation.
Allegedly, evaders use Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and other cryptocurrencies to avoid being scrutinized by tax authorities.
What is your opinion on the threats issued by the Korean city authorities? Let us know in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or solicitation of an offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. For the use or reliance on any content, goods or services mentioned in this article, or any loss or loss related to it, the company or the author shall not directly or indirectly bear any responsibility.