Gwacheon City aims to track and seize crypto assets from tax-dodging residents using a new electronic system.
Gwacheon City Targets Tax Evaders Hiding Crypto
Gwacheon City, South Korea, will launch its own virtual asset seizing system next month to track crypto wallets belonging to tax evaders. The initiative will initially target 361 high-income individuals who collectively owe over 18.8 billion won in unpaid taxes.
Authorities to Issue Warnings Before Crypto Seizure
Before seizing assets, officials will issue warnings, urging residents to settle their tax dues. If payments are not made by the deadline, authorities will proceed with asset confiscation. The tax collection process using the IT solution is set to begin in early 2025.
South Korea Strengthens Crypto Tax Enforcement
Despite postponing a 20% crypto tax until 2027, South Korean authorities have empowered local tax agencies to seize digital assets from tax evaders. Gwacheon City has already confiscated 110 million won worth of crypto in 2024 alone.
Government Pushes for Fairer Taxation
Gwacheon City Tax Division Chief Kang Min-ah emphasized the importance of this system in ensuring tax fairness. “We will realize fair taxation through strong responses to tax avoiders and actively block tax evasion through the seizure of virtual assets,” Kang stated.
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