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South Korean Province Utilizes Innovative System to Catch Tax Dodgers in Cryptocurrency
The South Korean province of Gyeonggi has implemented a new and effective system to identify and seize crypto assets from tax evaders, significantly improving the process of recovering owed taxes.
Cutting Edge Technology Reduces Timeframe for Seizing Crypto Assets
Previously, identifying and seizing crypto assets from tax evaders was a slow and cumbersome process, taking up to six months per case. However, a newly developed electronic management system has reduced this timeframe to just 15 days, as reported by local media.
How the System Works
The new system begins by inputting a list of delinquent taxpayers. It then utilizes resident registration numbers to track mobile phone numbers, significantly increasing the success rate of identifying individuals registered on cryptocurrency exchanges.
Results of the Enhanced Tracking System
The improved tracking system has led to the discovery of 5,910 tax evaders holding virtual assets like Bitcoin, totaling an owed amount of $3.5 million. Through the streamlined system, officials managed to collect $4.6 million in back taxes from over 2,300 of these individuals in just one year.
Commitment to Pursue Dishonest Delinquents
Noh Seung-ho, head of the Provincial Tax Justice Department, emphasized the province’s commitment to aggressively pursuing dishonest delinquents who claim to have no money to pay taxes while dealing in virtual assets and ensuring fair taxation through innovative measures.
Future Plans and Political Advocacy
The province plans to strengthen cooperation with crypto exchanges and explore administrative actions against those resisting data inquiries. Meanwhile, South Korea’s ruling People Power Party is advocating for a two-year postponement of the taxation on gains from cryptocurrency investments.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
