NTS, the tax agency of Korea, apprehended individuals implicated in the tax evasion scandal aided with crypto assets.
On one side, the adoption trend of Bitcoin and other cryptocurrencies has been tremendously increasing every day, but on the other side of the coin, people in Korea are also using virtual assets to evade taxes. According to the recent report, consistent efforts are being made by the Korean tax agency’s official authorities, and they are in charge of yielding considerable results against these tax evaders.
Korea’s Government Crackdown
Last month, after the conclusion of official meetings, the Korean government decided to impose taxes on Bitcoin and other cryptocurrencies’ capital gains. The decision was made after considering the remarkable acceptance of the digital assets in the country and the correspondence of these assets with other financial instruments on which taxes are imposed. The law will be properly applied in the next year, but during this interval, many Korean traders have acquired escape routes to evade taxes by using the BTC. In reaction, the Korean National Tax Service has defeated the dark plan. The NTS revealed that it arrested more than 2400 Korean traders due to hiding their assets, which were amounting up to $32.24 million. These assets were in the form of cryptocurrencies to prevent text payment.
Further investigations highlighted the presence of hidden cash and bonds accounting for the tax delinquency of 10 million won. The agency also reported that the law to ban the leading cryptocurrency’s capital gains would result in ensuring the complete shutdown of crypto tax evasion and will establish a transparent financial framework.
Final Statement by the National Taxation Service
This law was actually proposed as a result of the case filed by the Bithumb on NTS. The Korean exchange argued that there is no taxation law in the country which recognizes cryptocurrencies as taxable assets. Now, according to the final proposed statement by the government officials and National Tax Service, the traders and investors will have to pay 20% tax if they are earning more than 2.5 million won (approximately equal to the present 2300 dollars) from Bitcoin and other digital assets.