Tax evasion related to cryptocurrencies is becoming a hot topic for authorities in some Asian countries such as Japan and South Korea. A city in South Korea is now actively tackling tax evaders who declare unusually low incomes on their papers.
511 Face to authorities
According to Gugkje News, authorities in Gyeongju, North Gyeongsang Province, are aware of several possible cases of tax evasion with cryptocurrencies, where people would hide money in cryptocurrencies without reporting it to tax authorities.
As the new Special Law on Financial Information introduces controls on crypto-currency exchanges to combat money laundering and tax evasion, Gyeongju City and North Gyeongsang Province are working with four domestic exchanges to identify suspected tax evaders.
Bitumen and Upbeat would provide the data requested by authorities to analyze any violations.
At the time of going to press, 511 individuals are currently under investigation, while 68 legal entities are under parallel investigation for possession of undeclared cryptocurrencies.
But this is not a special request from the watchdogs, as cryptocurrency exchanges are required by law to always report suspicious transactions on their platforms. However, the City requires a thorough analysis of these alleged cases.
Authorities have also threatened to confiscate and collect the tokens if they find irregularities and confirm tax evasion by anyone involved in this saga.
Gyeongbuk Province plans to investigate whether a loss of 10 million won ($8,970) or more was actually caused by the escape. Gyeongju Mayor Joo Nak Young said:
We carry out various debt recycling services to recover high quality debts.
South Korea continues to actively fight crypto-currency tax evasion across the country
Bitcoin.com News recently reported that South Korea’s National Tax Service (NTS) has identified 2,416 people who have allegedly hidden their assets in cryptocurrencies to evade taxes.
Tax evaders are reportedly using Bitcoin (BTC), Ethereum (ETG), Ripple (CRP) and other cryptocurrencies to escape the scrutiny of tax authorities.
What do you think about the threat from the authorities in this South Korean city? Let us know your comments in the section below.
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