Most financial regulators throughout the world are facing the contemporary issue of cryptocurrency traders trying to evade taxes. Thus, several governments are always leveling new regulations to ensure due payment of tax by everyone.
The present regulations don’t give enough legal power for the South Korean governments to seize cryptocurrencies in digital wallets. However, they have the power to withhold or confiscate cryptocurrencies in exchanges of people who are trying to evade tax.
Yesterday, the South Korean government reportedly reviewed its tax system. Now, the proposed law is seeking to empower the South Korean governments to access and seize the cryptocurrency of tax evaders in their personal digital wallets.
Also, part of the aim of this review is to revise 16 existing tax codes for proper levying and auditing. This was necessary to reach an equilibrium between the increasingly aging Korean population and national tax incomes.
Therefore, the government is seeking to ensure equitable distribution of taxes on big institutions and wealthy individuals to cover up for the high aging population.
Nonetheless, the South Korean government is proposing to reduce corporate income tax on companies that are “reshoring production capacities.” Asides from that, they also plan to be more tax-friendly with companies hiring in other cities other than Seoul.
Having said that, recall that the South Korean regulators recently announced new AML regulations to foreign exchanges for tax purposes. Thus, the government is keen on getting accurate taxes from the stakeholders in the cryptocurrency industry.