South Korea Authorities Crack Down on Tax Evaders with $890K Crypto Seizure

North Gyeongsang Province in South Korea has seized cryptocurrency assets totaling $890,000 from residents who failed to pay their local taxes.

The province aims to collect $136 million in overdue taxes by the end of the year and has already recovered $35 million by August, per a report from Daekyung IIbo. The latest seizure is an ongoing effort to target tax evaders with cryptocurrency holdings.

South Korea Intensifies Tax Recovery Efforts

The province announced a two-month campaign to recover unpaid taxes, running from October 14 to December 13. The campaign involves 22 of the province’s largest cities and counties, all participating in this intensive operation. Local governments have established teams known as Local Tax Arrears Collection Teams, composed of tax officials led by local government leaders, to manage and carry out the tax recovery activities.

South Korean law permits local tax authorities to request information from domestic cryptocurrency exchanges. This allows officials to cross-reference tax records with crypto wallets data to identify individuals with outstanding tax obligations. If tax evaders do not pay their dues in fiat currency, the government has stated that it will liquidate the seized cryptocurrencies on the exchanges from which they were seized to cover the unpaid taxes.

This is not the first time South Korean authorities targeted cryptocurrency holders who are behind on their taxes. Various provinces and metropolitan cities across the country have also undertaken similar actions, liquidating significant amounts of cryptocurrency, including Bitcoin, Ethereum, and other altcoins.

Local Authorities Proceed with Asset Seizures

The North Gyeongsang provincial government indicated that it will continue its enforcement of tax collection by seizing and liquidating the assets of those who do not comply.

“In order to boost fairness for honest taxpayers, we plan to take firm and strong measures over the next two months. We also urge delinquent taxpayers to pay their bills promptly. […] This will help prevent the seizure and sale of their assets,” Kim Ho-jin, Head of North Gyeongsang Provincial Planning and Coordination Office said.

The provincial authorities have given tax evaders a choice to pay their arrears in fiat currency before any action is taken to liquidate their assets. If they fail to do so, the proceeds from the sale of the seized crypto will be used to settle the outstanding tax bills.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

Post Views: 38