On the other face of the story of Bitcoin adoption, it has been noticed that people are using the digital asset to evade the payment of tax in Korea. The tax agency of the country has intensified the effort to curb the menace, and it is showing forth in the results based on the recent report.
The Chain is Quite Transparent as Nothing is Hidden
The government of Korea has reached a consensus on the decision to start getting tasks from the capital gains from BTC. The basis was on the increasing adoption of the digital asset in the country’s economy and the similitude with the taxable instruments in the financial industry.
The application of this law will start in full by next year, but for now, there have been schemes devised by the Koreans to elude the payment of taxes.
NTS, the tax authority in Korea, has uncovered the plan. The National Tax Service (NTS) said over 2400 Koreans had been apprehended for using cryptocurrencies as a façade to hide their assets in a bid to elude the payments of taxes. The NTS discovered that the citizens’ assets hid about 36.6 billion won, which is about $32.24 million.
The bill on imposing a ban on the profits made from Bitcoin trading will enhance transparency and also avoid tax evasion through cryptocurrency.
The bill will be making every crypto trader or investor pay about 20% tax for every 2.5 million won they earn from BTC and other cryptos, which is about $2300 at the present market rate.
When the bill is in place, there will be a lot of clarity to the tax laws of the country. The absence of the law has been a support for the argument of Bithumb in a legal case against the National Tax Service of Korea. The crypto exchange based in Korea has hinted that cryptocurrencies are not recognized by law as taxable assets after the NTS billed the exchange about 80 million won worth of tax.
More Focus on the Tax Evasion Through Crypto
Just like crypto is getting adopted in the mainstream as every other traditional asset, the attention of regulatory and other governmental bodies has been focused on it. While many other governments have listed it as taxable assets, many others still have struggles around it based on the possibility of using it for tax evasion.
As a matter of fact, in the comprehensive report of the Cyber Digital Task Force in the Attorney General in the US, tax evasion was mentioned as one of the three categories of crimes committed with cryptocurrencies amongst money laundering and others.