The government of South Korea is actively engaged in amplifying the crackdown on people who haven’t paid their taxes and is moving its focus to the city of Yeongcheon. To date, South Korea has not charged taxes on profits earned from cryptocurrency trading. Yet, the government is taking and monetizing cryptocurrencies from people who have tax liabilities. This seems a way for the government to collect owed taxes, even if it’s not in the form of traditional currency.
Yeongcheon City targets crypto tax evaders with high-tech tools
The Japanese newspaper, Gyeongbok Shinmun, revealed, that onwards April 15 Yeongcheon City is taking a hardline stance on tax evasion, launching a new initiative to chase down unpaid tax bills. The authorities are armed with cutting-edge tech that can sniff out crypto assets. This advanced software can dig through domestic crypto exchanges to identify residents who owe taxes. Once they’re in the crosshairs, authorities can take swift action to collect what’s due.
With the government’s backing, local tax authorities now have the power to freeze crypto accounts, confiscate digital assets, and even sell them off to settle unpaid taxes. It’s a clear warning to anyone thinking of dodging their tax obligations: get your affairs in order, or face the consequences!
Yeongcheon City gets serious about tax evasion with vehicle seizures
The city is cracking down on tax evasion with special teams patrolling the streets. They’ll check licence plates in residential areas, busy streets, and parking lots. If a vehicle belongs to a tax evader, it’ll be towed and impounded. If the owner still doesn’t pay up, the city will sell the vehicle at auction. The city is acting now because Bitcoin prices have risen, making it more likely tax evaders will invest in crypto. By cracking down, the city ensures everyone pays their fair share.
Tax officials in Pohang recently announced they will seize crypto from 5,200+ tax dodgers. This is part of a nationwide crackdown on tax evasion. Last year, officials confiscated nearly $29 million in crypto and assets from tax evaders nationwide.
Also read: Japan’s Crypto Tax System in Line for Major Update
