Cryptocurrency market cap, nearly 10 times larger in the last 3 years
On the 15th, the head of the Taxation and Legal Affairs Bureau of the National Tax Service, Jung Cheol-woo, is briefing on the 15th at the Sejong City Government Complex Sejong 2, saying that it has secured 33.6 billion won in cash and bonds for 2,416 high-payers who concealed their assets using virtual assets such as bitcoin. yunhap news
Mr. A, who runs a hospital in Gangnam, Seoul and lives in an expensive apartment, did not pay a total income tax of 2.7 billion won. He concealed 3.9 billion won worth of hospital income as virtual assets (virtual currency). After confirming that the virtual asset was concealed, the IRS informed him that it would seize his virtual asset, and he himself paid the full amount of the arrears in cash.
According to the National Tax Service on the 16th, the IRS collects and analyzes data on the virtual asset holdings of arrears from a virtual asset exchange and collects 36.6 billion won in cash against the 2,416 high-payers who have concealed their assets using virtual assets such as bitcoins like Mr. A. Secured with bonds. Among them, 222 are suspected of evading additional forced collection, such as concealing the transfer of real estate, and are under follow-up investigation.
It is the first government ministry to collect compulsory tax on arrears who concealed their assets as virtual assets.
Cheol-woo Jung, Director of the Taxation and Legal Affairs Bureau of the National Tax Service, explained, “As investors and transaction amounts for virtual assets have increased significantly, the possibility of concealing assets as virtual assets has been raised, and through planning and analysis, we are forced to collect them.” He added, “We will continue to swiftly respond to the increasingly intelligent property concealment behavior, and trace and redeem the concealed property of high-liquid payments until the end.”
The IRS seized the withdrawal claim or refund claim that the owner had against the exchange, not the virtual asset itself. As a result, delinquents who were unable to convert cryptocurrency into cash either paid arrears in cash or dispose of cryptocurrency to pay back taxes.
In the case of compulsory collection of virtual assets, there were various cases such as high-income professionals who concealed business income as virtual assets like Mr. A, as well as large heirs who hid their inherited assets as virtual assets.
Mr. B, an agricultural product e-commerce business, did not pay 600 million won in arrears and concealed 1.4 billion won in income as virtual assets. C, who transferred real estate in Gyeonggi-do for 4.8 billion won, did not pay 1.2 billion won in capital gains tax, but hid 1.2 billion won worth as a virtual asset. D, the delinquent person, did not pay 200 million won in inheritance tax on the 1.7 billion won inherited financial property due to his father’s death, and concealed 500 million won of inheritance as a virtual asset.
Mr. E did not pay 2.6 billion won in arrears due to underreporting of the property donated several times from related parties, and concealed the gifted property as a virtual asset worth 100 million won. He is also undergoing intensive follow-up investigations of property donated in cash.
The National Tax Service expects that the effectiveness of forced collection will increase as the price of virtual assets such as Bitcoin, Ethereum, and Ripple surges recently. This is because the delinquent person can mobilize funds from other sources to pay the arrears rather than disposing of the virtual asset now, and make a profit as the virtual asset rises further in the future.
On the 15th, bitcoin information is appearing on the electronic board at Bithumb Gangnam Center. yunhap news
It is believed that the market capitalization of cryptocurrencies listed on domestic exchanges has increased by nearly 10 times in the last three years, centering on Bitcoin.
According to the cryptocurrency exchange industry, the exchange Upbit’s own comprehensive market index (UBMI) is 9742.62 points as of 5:45 pm on the 15th.
It is close to 10 times that of October 1, 2017 (1,000 points), when the index was first calculated, and exceeded 10,000 points for the first time on the 13th.
It once rose to 12,914.44 points.
However, virtual assets of delinquents recently seized by the National Tax Service are virtual currencies handled by domestic exchanges, and users of overseas exchanges have been left out of this measure. This is due to the limitation of being unable to enforce compulsory collection (old disposition for arrears) at overseas exchanges.
Income (other income) of virtual assets will be taxed next year, but there is also a concern that overseas exchanges will become taxable blind spots.
According to the National Tax Service, holders will be obligated to report from next year so that foreign virtual assets do not become a means of evasion. This is because foreign virtual assets were added to the obligation to report overseas financial accounts due to the amendment of the’International Tax Adjustment Act’ at the end of last year.
Accordingly, from next year, domestic residents or domestic corporations whose total balances in overseas financial accounts, including virtual assets using overseas exchanges, exceed 500 million won on any of the last days of each year, must report to the competent tax office in June of the following year.
As virtual assets held by using foreign exchanges or through individual transactions eventually depend on the taxpayer’s sincere reporting, severe sanctions are imposed on those violating the reporting obligations, and the informant reward system is also operated.
Violation of the obligation to report overseas financial accounts will result in a fine of up to 20% of the unreported or underreported amount. If the unreported amount exceeds 5 billion won, it is subject to criminal prosecution and list disclosure review.
Informants who provide important information to detect violations of the obligation to report overseas financial accounts will receive a reward of up to 2 billion won, equivalent to 5-15% of fines or fines for negligence.
Sejong = Reporter Woo Sang-kyu [email protected]
[ⓒ 세계일보 & Segye.com, 무단전재 및 재배포 금지]