Korean Tax Agency Apprehends BTC Tax Evaders: Report

The Korean Tax Agency apprehends BTC tax evaders and is going after more individuals that are involved in crypto tax evasion as we can see more in our latest cryptocurrency news.

On the flip side of the expanding Bitcoin adoption, the digital asset was used to elude taxes in Korea which only made the efforts of the country’s tax agency go after anyone that is dealing with crypto. The Korean government finalized the decision to levy taxes on the BTC capital gains whose ruling was in line with the growing acceptance of crypto and other taxable financial tools. The law will take its due course from 2022 but in the meantime, citizens of Korea devised many schemes to evade taxes using BTC.

The Korean Tax agency NTS came up with a great plan. The National Tax Service said that it apprehended more than 2400 Koreans for hiding assets worth $32.23 million in crypto to avoid paying taxes on them. Further findings revealed there were hidden bonds and cash that accrued to the tune of 10 million won in taxes. The agency reported it is closing in on the 222 defaulters for the cases and the new law imposes a ban on BTC capital gains that will improve transparency and will shut the door on crypto tax evasion. According to the proposed bill, the investors and traders will pay up to 20% in taxes if they earn over 2.5 million Won.

The bill will also bring more clarity to the tax laws of the country and the lack of it formed the basis of the argument in the case against NTS. Korean Exchange Bithumb already argued that the law of the country didn’t recognize cryptocurrencies as taxable properties by the laws after the regulator slapped it with an 80 million won fine for withholding taxes.

As cryptocurrencies close on the traditional asset classes in regards to governments and adoption, regulators also turned their attention to them. many governments recognize them as taxable assets while others battle against the possibility of assets abetting tax evasion. The US Attorney General’s task force listed tax evasion as one of the main categories of illicit cryptocurrencies and outlined “money laundering and the shielding of legitimate activity from tax, reporting, or other legal requirements.”