South Korea's “virtual currency tax crackdown'' continues to tour the country, and has even expanded to Yeongcheon City, North Gyeongsang Province.
Profits from crypto trading are not yet subject to taxation in South Korea, but local authorities are seizing and liquidating coins from so-called “tax delinquents” in a nationwide crackdown.
Yongcheon attracts attention due to South Korea's “virtual currency tax crackdown”
According to the Gyeongbok Shimbun, Yeongcheon city authorities announced on April 15 that they would “begin intensive collection efforts” for unpaid taxes.
Local tax authorities have been given a powerful new software tool that allows them to sift through the country's cryptocurrency exchange data to find out more about residents.
They can use this data to match unpaid invoices with corresponding cryptocurrency wallets and associated bank accounts.
The central government has given them the power to freeze wallets, seize tokens, and even liquidate coins if they identify “tax evaders.”
Nagakawa City announced that the campaign will continue until June 28th.
Tax officials target cars, virtual currency, etc.
The campaign will also see number plate 'preservation' teams 'patrolling' the city's streets. The team will investigate “residential areas, high traffic areas, apartment complexes, and parking lots.”
The city announced that teams will tow and impound vehicles of delinquent taxpayers. The report said if the public fails to settle the outstanding taxes, the team will “immediately sell the vehicle at public auction.”
Some citizens claim they don't have enough money to pay their council tax. However, the city said it would confirm the veracity of their claims by checking their cryptocurrency wallets. Also check “Investment in secondary financial institutions.”
The outlet wrote that one of the main reasons the city is now taking action is due to the recent rise in Bitcoin prices.
The media explained that the revitalization of the market has “increased the possibility that tax delinquents will invest in crypto assets.”
Oh Yong-ho, director of the city tax department, said:
“We would like to thank all the people who faithfully pay their taxes despite the recent economic recession. […] Increase local tax revenue by taking strong measures against repeat offenders. ”
Earlier this month, tax authorities in the city of Pohang in the state announced that they would seize cryptocurrencies from 5,208 “local tax evaders.”
As a result of this nationwide campaign, tax authorities confiscated approximately $29 million worth of coins and fiat currency from crypto wallets in 2023.
