In a recent update, local authorities in Ansan, a South Korean city in the Gyeonggi Province, have revealed plans to seize cryptocurrency tax evaders. The recent developments are part of concrete efforts by the government to recover unpaid local taxes from the city's citizens.
Identifying Tax Evaders
Per a local news outlet, Newsis, Ansan Mayor Lee Min-Geun disclosed that the local authorities would be utilizing a “virtual asset platform seizure system.” The platform cross-matches inputted data with a list of tax delinquents. It is regularly updated based on tax records. Therefore, it identifies only those who have defaulted on their taxes. After identification, the city can freeze wallets and demand payment.
Consequently, the city can seize or collect deposits, confiscate virtual assets, etc. With these measures, the government aims to encourage voluntary payment of arrears. At the same time, the authorities could sell the assets to recover unpaid amounts.
Previous Asset Seizures
Notedly, local authorities have only conducted asset seizures against non-tax revenue delinquents as a pilot operation before now. However, on August 2, authorities have revealed that starting this month, it will utilize the platform across all local tax revenue areas.
Mayor Lee Min-Geun noted that because local tax delinquents have been abusing virtual assets as tools to evade taxes, a counter-development became crucial. Hence, the decision to adopt the virtual asset platform seizure system
According to city officials, the Gyeonggi Province is one of the most developed parts of the country, with high rates of cryptocurrency ownership. Interestingly, the domestic crypto market capitalization hit the $31.7 billion mark in the just concluded year.
Considering the sum highlighted above, the city aims to uncover hidden tax arrears, which, when recovered, would spike tax revenues. Meanwhile, last month, Ansan police arrested several residents as part of a nationwide strategy to crack down on a suspected $4.3 million crypto-powered drug trafficking ring. Therefore, it corroborates initial claims about the Gyeonggi Province citizens' involvement with crypto trading.
