National Tax Service Levies 71.2 Billion Won in Virtual Assets Owned by Delinquent Taxpayers

Image of cryptocurrency / Reuters-Yonhap News

The National Tax Service seized virtual assets, including cryptocurrency, amounting to 71.2 billion won from delinquent taxpayers in the last two years.

According to a list of tax levies on delinquent taxpayers who concealed their property in virtual assets sorted by the amount of tax liability, which Democratic Party of Korea lawmaker Jin Sun-mee, a member of the parliamentary Strategy and Finance Committee, obtained from the National Tax Service on December 19, the National Tax Service levied virtual assets worth 71.2 billion won from 5,741 delinquent taxpayers from the second half of 2020 until recently.

Among the digital assets seized, the tax authority cashed 42.5 billion won and secured 28.7 billion won in bonds.

The Tax Service seized virtual assets worth 17.4 billion won from 493 taxpayers with 200 million won or more in tax debt and 53.8 billion won from 5,248 taxpayers with tax liabilities of less than 200 million won.

The tax authority began seizing virtual assets in the second half of 2020 to prevent top and chronic tax delinquents from concealing their property in virtual assets.

The amendment of the National Tax Collection Act last June provided legal grounds for the National Tax Service to levy virtual assets. It enabled the tax authority to demand tax defaulters and virtual asset exchanges to transfer the virtual assets owned by delinquent taxpayers.

Lawmaker Jin said, “We need to continue with a strong response to acts of concealing property and intentionally evading taxes through virtual assets.”