According to local media, the South Korean government has confiscated cryptocurrency worth approximately $184 million over two years because of tax arrears. In 2021, the Seoul authorities began to confiscate virtual assets from tax evaders.
Nearly 260 Billion Won in Crypto seized for tax evasion in South Korea
According to online publications Yonhap News, Maekyung revealed Thursday that the amount of crypto assets confiscated from South Koreans who are accused of tax evasion has reached nearly 260 billion Korean won (close enough to $184 million at current exchange rate).
These reports cite official numbers from the Ministry of Economy and Finance and the Ministry of Security and Public Administration. They also include the National Tax Service (NTS), South Korea's South Korean tax service, and authorities in 17 provinces and cities.
The news outlets reported that more than 176billion won worth of assets were taken due to non-payments of national taxes and more than 84billion won of crypto was seized because of local tax arrears.
A third of the cryptocurrency was taken in Seoul (at 17.8 billion won), Incheon (closer to 5.5 billion won) and Gyeonggi (over 53 billion won). In the second half 2020, the South Korean government authorized the seizing of virtual assets.
Since then, 12.5 billion won ($8.8million) was the highest amount of cryptocurrency seized from one individual. The victim, a Seoul resident, was unable to pay 1.43 billion won local taxes. He also had holdings of 20 digital currencies including 3.2 billion won (BTC) and 1.9 billion won (XRP).
The taxpayer chose to pay his taxes and requested to keep the crypto investment. If the Korean tax authority seizes an individual's exchange account, or assets, the currency is sold at the current exchange rate.
After vowing to fight tax evasion via virtual assets and platforms in August, the NTS released statistics about the seized cryptocurrency. South Korea delayed the implementation of a 20% tax on crypto-related profits until 2025 earlier this year. The tax, which applies to capital gains exceeding 2.5million won, was originally supposed to be in place in January 2023.
Are you concerned that South Korean authorities might continue to seize crypto assets of taxpayers who have outstanding obligations? Comment below to share your views.
Frequently Asked Questions
What is a Precious Metal IRA and How Can You Benefit From It?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These are called “precious” metals because they're very hard to find and very valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. You'll get dividends each year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, you only pay a small percentage on your gains. Plus, you get free access to your funds whenever you want.
Is the government allowed to take your gold
Your gold is yours, so the government cannot confiscate it. It is yours because you worked hard for it. It is yours. This rule may not apply to all cases. You could lose your gold if convicted of fraud against a federal government agency. Additionally, your precious metals may be forfeited if you owe the IRS taxes. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
Which precious metals are best to invest in retirement?
Gold and silver are the best precious metal investments. Both are easy to sell and can be bought easily. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: This is the oldest form of currency that man has ever known. It is also extremely safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: Silver is a popular investment choice. It's an ideal choice for those who prefer to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. It is, however, more expensive than its competitors.
Rhodium: The catalytic converters use Rhodium. It is also used for jewelry making. It is also quite affordable compared with other types of precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
Is buying gold a good retirement plan?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
The most popular form of investing in gold is through physical bullion bars. There are many ways to invest your gold. It is best to research all options and make informed decisions based on your goals.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you need cash flow from an investment, purchasing gold stocks is a good choice.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs can include stocks of precious metals refiners and gold miners.
How does a Gold IRA account work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can purchase gold bullion coins in physical form at any moment. To start investing in gold, it doesn't matter if you are retired.
An IRA allows you to keep your gold forever. Your gold holdings won't be subject to taxes when you pass away.
Your gold is passed to your heirs without capital gains tax. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. After you have done this, an IRA custodian will be assigned to you. This company acts as an intermediary between you and IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit required is $1,000 However, you'll receive a higher interest rate if you put in more.
You will pay taxes when you withdraw your gold from your IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
You may not be required to pay taxes if you take out only a small amount. There are exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
You shouldn't take out more then 50% of your total IRA assets annually. If you do, you could face severe financial consequences.
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads. Example. And Risk Metrics
Guidelines for Gold Roth IRA
Starting early is the best way to save for retirement. It is best to start saving for retirement as soon you can (typically at age 50). It's vital to contribute enough money each year to ensure adequate growth on an ongoing basis.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. They are a great option for those who do not have access to employer matching money.
It's important to save regularly and over time. You will lose any potential tax advantages if you don't contribute enough.
By: Lubomir Tassev
Title: South Korea Seizes $184 Million in Crypto Assets From Alleged Tax Dodgers, Reports Reveal
Sourced From: news.bitcoin.com/south-korea-seizes-184-million-in-crypto-assets-from-alleged-tax-dodgers-reports-reveal/
Published Date: Sat, 24 Sep 2022 06:30:27 +0000