South Korean authorities seem to focus on strengthening measures to combat tax evasion across the country. The country’s tax regulator has analyzed thousands of evaders who rely on cryptocurrencies to hide assets worth billions of won.
Evaders has hidden a total of $32.24 million in assets
According to the Korea Herald, the National Tax Service (NTS) of South Korea identified 2,416 individuals who reportedly concealed their assets in cryptocurrencies to bypass taxes. The agency stated that evaders use Bitcoin (BTC), Ethereum (ETH), ripple (XRP) and other cryptocurrencies to avoid being scrutinized by tax authorities.
According to officials, the assets involved in tax evasion totaled 36.6 billion won (32.24 million U.S. dollars). In addition, NTS clarified that they are mainly targeting people with taxes exceeding 10 million won (8,800 U.S. dollars).
Despite this, the tax authorities managed to recover the hidden assets in cash and bonds. At the same time, they launched an investigation into 222 people who allegedly evaded taxes. The agency issued the following statement:
The latest investigation is part of our unremitting efforts to strengthen the fight against anti-social tax avoidance. We will capture highly intelligent (tax evasion) cases and quickly redeem their hidden attributes.
Domestic cryptocurrency exchange in cooperation with NTS
NTS said they rely on domestic crypto exchanges to collect personal data from so-called tax evaders. It includes personal transaction reports and bank information, and is in full compliance with the strict regulations currently ruling the Korean cryptocurrency field.
According to the law, South Korean cryptocurrency exchanges must provide this service through the use of real-name systems in cooperation with financial institutions.
Banks will be obliged to conduct customer due diligence on the encrypted business they handle to ensure proper reporting to the Korean Financial Intelligence Unit (KOFIU).
Bitcoin.com’s news desk reported that the South Korean government issued an amendment to impose a 20% tax on cryptocurrency trading profits.
Although the regulations were promulgated in February, the legislation clarified at the beginning of this year that the new regulations will begin to apply in 2022.
What do you think of the recent crackdown on South Korean tax evaders? Let us know in the comments section below.
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