In the city of Pohang, South Korean tax officials are clamping down on tax evasion by seizing cryptoassets from residents who have failed to pay their local taxes. This move is part of a broader crackdown on individuals who have evaded tax bills worth $370 or more. The city of Pohang has set ambitious targets to collect almost $5 million in tax arrears from its citizens, indicating the seriousness of the situation.
Tax officials in Pohang have combed through data from major domestic crypto exchanges such as Bithumb, Upbit, Korbit, and Coinone to identify residents who own cryptoassets but have not paid their taxes. By utilizing data from these exchanges, where wallets are linked to real-name, social security number-verified bank accounts, tax officials have been able to pinpoint 5,208 residents who are behind on their taxes. This data-driven approach is helping authorities to crack down on tax evasion more effectively.
The city of Pohang has taken a proactive stance in collecting delinquent taxes by seizing the cryptoassets of tax evaders. Once it is determined that the seized assets belong to tax evaders, the city will freeze transaction activities such as sales or withdrawals. Tax delinquents will be given an ultimatum to voluntarily pay their tax bills, and those who fail to comply will have their virtual assets sold on the exchange market. This swift and decisive action sends a strong message to individuals who attempt to evade taxes using cryptoassets.
Won Ki-ho, the head of the tax department at the Nam Gu Office in Pohang, emphasized the importance of raising awareness among delinquent taxpayers. The city plans to introduce customized collection techniques that are suitable for the digital age, highlighting the evolving nature of tax enforcement in the era of digital assets. By leveraging innovative approaches to tax collection, authorities in Pohang are aiming to increase compliance and crack down on tax evasion effectively.
As South Korea’s parliamentary election campaign heats up, cryptoassets have become a battleground issue, underscoring the country’s position as a major digital-asset market. The proactive measures taken by tax officials in Pohang and other cities demonstrate the government’s commitment to ensuring tax compliance and combating tax evasion in the growing crypto industry.
