The National Tax Service (NTS) in South Korea has recently announced the liquidation of over $800,000 worth of previously frozen cryptocurrency in efforts to crack down on tax dodgers who hide their income through crypto investments. This initiative by the NTS and its regional affiliates has been ongoing for several years, resulting in the seizure and forced liquidation of coins belonging to thousands of crypto holders across the country. The NTS revealed that it had frozen more than $79 million worth of coins from tax dodgers, who have since paid over $69 million in fines and outstanding tax bills to regain access to their tokens. In cases where tax evaders failed to settle their bills, the NTS proceeded to directly sell $800,000 worth of coins, with potentially millions more in holdings waiting to be liquidated.
The head of the NTS’ Tax Collection and Legal Department, Yang Dong-hoon, emphasized the agency’s commitment to achieving tax justice by closely monitoring the assets of high-value and habitual tax delinquents until the very end. In addition to the cryptocurrency liquidation, the NTS also disclosed the seizure and sale of other assets, such as valuable artwork, undeclared inheritances, luxury cars, and prepaid golf course memberships. With tax delinquents found to be living luxurious lifestyles in expensive residences, the NTS aims to hold them accountable for their actions and recover unpaid taxes through the seizure and liquidation of assets.
In a recent press conference held at its Seoul headquarters, the NTS showcased the results of its five-year crackdown on tax evasion involving crypto investments. According to the agency, it had enforced “forced collections” on 641 high-value and habitual tax delinquents, resulting in the freezing of significant amounts of cryptocurrency holdings. Since 2021, the NTS has unfrozen millions of dollars’ worth of coins by collecting fines and outstanding tax payments from tax dodgers, with a plan to liquidate the remaining $9 million in seized assets if the offenders fail to comply with payment terms. This aggressive approach serves as a deterrent to tax evasion through cryptocurrencies and highlights the NTS’s determination to uphold tax laws and regulations.
One notable case in March involved tax authorities in the city of Hwaseong confiscating over $768,500 worth of cryptocurrency from tax offenders, including a single individual with assets valued at around $567,000. Such high-value confiscations underscore the significant financial implications for tax evaders who attempt to conceal their income or assets through cryptocurrency holdings. By publicizing the liquidation of seized crypto assets and other valuable items, the NTS aims to send a strong message to tax dodgers in South Korea that tax evasion will not be tolerated, and those found guilty will face serious consequences, including the forfeiture of their assets and potential legal repercussions. This persistent effort by the NTS reflects a commitment to promoting tax compliance and accountability within the crypto community and broader financial sector in South Korea.
