Tax Dodgers Beware: South Korean Province Cracks Down on Crypto Wealth Hideout

South Korea's Gyeonggi Province Implements Nuanced Tracking System to Identify Tax-Evading Crypto Holders

South Korean Province recovers $4.6M in unpaid taxes with Crypto Tracking System

📆 Last updated: February 22, 2024 00:26 EST | ⌛ 1 min read

The South Korean province of Gyeonggi has come up with a brilliant solution to catch tax evaders who try to hide their wealth in cryptocurrency. This innovative approach has already helped recover a staggering $4.6 million in unpaid taxes from just one group of delinquents.

In the past, identifying and seizing crypto assets from tax evaders was a slow and cumbersome process, taking up to six months per case. However, thanks to a newly developed electronic management system, this timeframe has been drastically reduced to just 15 days, as reported by a local media outlet.

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So, how does this new system work? It’s quite ingenious, really. Authorities input a list of delinquent taxpayers into the system, which then utilizes resident registration numbers to track their mobile phone numbers. This significantly increases the chances of finding these individuals registered on cryptocurrency exchanges.

Tracking Down Over 5,000 Tax Evaders Holding Crypto

Thanks to this enhanced tracking system, authorities have successfully identified 5,910 tax evaders holding virtual assets like Bitcoin, collectively owing a staggering $3.5 million in taxes. And here’s the cherry on top: using this streamlined system, officials were able to collect a whopping $4.6 million in back taxes from over 2,300 of those individuals in just one year!

“We will continue to aggressively pursue dishonest delinquents who claim they have no money to pay taxes while dealing in virtual assets,” declared Noh Seung-ho, head of the Provincial Tax Justice Department. These measures are aimed at protecting honest taxpayers and ensuring fair taxation through innovative solutions like this one.

To further strengthen their efforts, the province is also working on strengthening cooperation with crypto exchanges and exploring administrative actions against those that resist data inquiries. Local governments have been granted the power to take such actions.

But wait, there’s more! As we reported earlier, South Korea’s ruling People Power Party is pushing for a two-year postponement of the taxation on gains from cryptocurrency investments. This move is seen as a potential campaign promise ahead of the upcoming general election scheduled for April.

That’s all for now, folks! Stay tuned for more updates on the exciting world of blockchain and crypto. Don’t forget to follow us on Google News for the latest stories in the digital realm. 🌐

Q&A: Everything You Need to Know

1. How does the electronic management system speed up the process of catching tax evaders in South Korea?

The electronic management system in South Korea inputs a list of delinquent taxpayers into the system and utilizes their resident registration numbers to track their mobile phone numbers. By doing so, the system increases the chances of finding these individuals registered on cryptocurrency exchanges, significantly speeding up the process of catching tax evaders. 

2. How much money has been recovered from tax evaders using this new system?

Using the streamlined system, over $4.6 million in back taxes has been collected from over 2,300 tax evaders in just one year. This underscores the effectiveness of the new approach in recovering unpaid taxes from cryptocurrency holders. 

3. What actions will be taken against those who resist data inquiries in South Korea?

Local governments have been granted the power to explore administrative actions against crypto exchanges that resist data inquiries. By strengthening their cooperation with these exchanges and taking necessary actions, authorities aim to ensure fair taxation and combat tax evasion effectively. 

4. Why is South Korea’s ruling People Power Party advocating for a two-year postponement of taxation on gains from cryptocurrency investments?

The ruling People Power Party is pushing for a two-year postponement of the taxation on cryptocurrency gains as a potential campaign promise ahead of the upcoming general election. This move is seen as an effort to garner support from cryptocurrency investors and enthusiasts. 

References:

1. South Korean Province Recovers $4.6 Million in Taxes from Crypto Tax Evaders
2. Taxation on Gains from Cryptocurrency Investments

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