(MENAFN) In a bid to combat tax evasion, authorities in the city of Pohang, South Korea, have unveiled plans to confiscate cryptocurrency assets from individuals who owe significant tax debts, according to reports from Korean media outlets. This initiative forms part of a broader crackdown on tax delinquency, signaling a proactive approach to enforcing tax compliance within the country.
As outlined in the daily newspaper Kyongbuk Maeil Shinmun, the municipal government of Pohang will target individuals who owe 500,000 won (approximately USD368.76) or more in taxes to the local tax office. Digital assets belonging to these "delinquent" taxpayers will be subject to seizure and freezing, with authorities closely monitoring transactions on popular cryptocurrency exchanges such as Bithumb, Upbit, Korbit, and Coinone.
The surge in the value of virtual assets owned by tax delinquents has raised concerns, with overdue arrears totaling over USD12 million owed to the city. In response, local authorities are undertaking investigations to identify individuals with digital assets and ensure compliance with tax obligations.
Upon confirmation of tax arrears, the crypto accounts of affected individuals will be promptly seized, halting any transactional activities such as sales or withdrawals. Should delinquent taxpayers fail to settle their obligations voluntarily following asset seizure, the virtual assets will be liquidated on exchange platforms to cover the outstanding taxes, according to reports.
Won Ki-ho, the head of the local tax office, emphasized the commitment to combating chronic tax evasion, stating, "We will do our best to raise awareness about chronic delinquent taxpayers by not only seizing and selling virtual assets but also introducing various customized collection techniques suitable for the digital age."
The introduction of crypto seizure measures in Pohang reflects a proactive stance by South Korean authorities in addressing tax non-compliance within the digital asset space. By leveraging technology and employing innovative enforcement strategies, the city aims to enhance tax collection efforts and uphold fiscal integrity in line with evolving financial landscapes.
MENAFN18042024000045015687ID1108109086
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.