As per local reports, official authorities in Gyeonggi Province, South Korea, have successfully utilized a special electronic management system to trace and collect outstanding taxes from crypto tax evaders. As political parties promote their scheme on crypto promises, this is how 62B Won tax evasion was collected.
Revolutionizing Tax Collection
The Gyeonggi Province’s electronic management system marks a landmark shift in tackling tax evasion related to virtual assets. Inputting the delinquents’ information triggers an automated sequence of actions within the system, including tracking, freezing, asset transfer, sale, and the retrieval of Korean won.
This innovative approach has drastically reduced the time frame for these procedures to around 15 days, compared to the previous troublesome exchange of official documents, which could extend over six months.
The regional tax official said in the report, “This electronic system has enabled us to identify nearly 5,910 individuals who owe more than 300,000 KRW in local taxes and hold virtual asset accounts, resulting in the successful collection of 62 billion KRW in outstanding taxes in the past year.”
Local authorities leveraged the system to cross-reference delinquent taxpayers‘ resident registration numbers with their mobile phone numbers. This data-driven approach allowed the officials to track individuals and substantially increase the success rate of identifying cryptocurrency holders through local exchanges.
The use of this electronic system signifies a significant leap forward in fighting tax evasion in the country’s crypto market. The system streamlines the process, significantly reducing the time required for investigations and enabling efficient measures like asset seizure and liquidation.
Political Party Vows on Crypto Ahead of Elections
A couple of days back, South Korea’s political party, the People Power Party, made promises related to cryptocurrency ahead of the upcoming national elections on April 10. Both the ruling People Power Party and the opposing Democratic Party are putting forward crypto-related pledges.
The People Power Party has outlined several poll promises, aiming to introduce spot Bitcoin exchange-traded funds (ETFs) and establish a ‘digital asset promotion committee.’ Moreover, the party commits to proposing laws and sanctions, prioritizing a regulatory framework before implementing a cryptocurrency gains tax scheduled for January 2025. This proposal could potentially delay the tax implementation until 2027.
A member from the party gave a statement stating, “I think there is a need for at least a two-year delay until the amendment is passed and such a system is actually built.”
On the opposing front, the Democratic Party is yet to release its proposal, which includes allowing investors to purchase spot Bitcoin ETFs.
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