The tax body of South Korea has made a determination in which it has identified a large group of taxpayers who are crypto owners and have deliberately avoided tax. The long-drawn investigation has borne fruit as the Government has been able to seize crypto funds worth US$ 47 Million from alleged tax evaders.
Approximately, US$ 47 Million worth of digital currencies/assets has been seized by the South Korean Government. The authorities informed that the seized assets belonged to South Korean taxpayers who were deliberately avoiding tax. The authorities had initiated the inquiry for a very long time but it had only now come to a determination.
It was informed by the authorities that the investigation revealed that at least 12,000 individuals were found hiding their crypto wealth. From these 12,000 individuals, the authorities then seized their crypto assets which amounted to the local currency as Won 53 Billion. Most of the confiscated funds were either in Bitcoin or Ethereum, which are the two major cryptocurrencies of the world. Apart from Bitcoin and Ehtereum, the tax evaders were also found in possession of other famous and non-famous cryptocurrencies as well.
An allegation was also raised by the governmental authorities that the evaders of tax were hiding their crypto assets through crypto exchanges. Since the exchanges in South Korea do not ask their customers to provide residential registration ids, therefore, they remained impossible to track. However, in order to trace these individuals, the authorities had to trace them through their residential/mobile phone numbers.
One such individual amongst the tax evaders was a well-reputed businessman of South Korea who was hosting a channel for home shopping. From him, the authorities successfully confiscated cryptocurrencies worth 500 Million won. The tax due to him was exceeding 20 Million won. There was another crypto holder who was the owner of more than 30 houses. In his possession, the authorities seized crypto assets exceeding 1 Billion won. The tax amount due to this property owner was 30 Million won and he has been sent a final notice to clear the outstanding tax.
The authority also took note that a doctor was holding huge amounts of crypto funds. However, against him, there was an amount of 17 million won payable as tax. However, for a very long time, he was able to successfully avoid payment of the due tax. Now that he has been identified, therefore, his crypto assets have been seized as security for the settlement of outstanding tax dues.
In the meantime, the authority has issued a public warning informing the tax evaders that their confiscated assets will be sold. It has been clarified that in case their tax dues are not cleared, then the authority will liquidate the assets for payment of outstanding dues.