The tax department of the Seoul metropolitan government in South Korea has reportedly seized cryptocurrencies worth about $ 25 million from hundreds of crypto investors in back taxes. The cryptocurrencies, including bitcoin, were seized on three exchanges. The tax authorities are now chasing hundreds of taxpayers who are overdue in paying their taxes.
Crypto Seizure for Tax Payments
Seoul’s metropolitan government announced on Friday that it has confiscated cryptocurrencies from hundreds of individuals who are in arrears with their tax payments, Yonhap reported.
Cryptocurrencies of 1,566 individuals, including heads of companies, have been identified by the city government’s tax collection department on three cryptocurrency exchanges. So far, the tax authorities have seized the coins of 676 people who owe the government 28.4 billion (about $ 25.47 million) in back taxes. It will soon go after the crypto assets of the other 890 people.
Since the seizure of the cryptocurrency, 118 taxpayers have repaid 1.26 billion won, the city government said:
We are constantly being asked by delinquent taxpayers to refrain from selling their cryptocurrencies because they will pay their taxes.
“We believe taxpayers expect the value of their cryptocurrencies to rise further as a result of the recent spike in the price of cryptocurrencies and we have determined that they will gain more by paying their back taxes and releasing the seizure”, the government said.
The city council gave an example of the head of a hospital whose cryptocurrencies were seized. He asked the authorities not to sell his coins and immediately paid 580 million won of the 1 billion won he owed in unpaid taxes and secured the rest.
Likewise, another taxpayer asked the government not to sell its seized cryptocurrencies worth 3 million won, arguing that their value will increase significantly within two years and more than cover his back tax of 20 million won.
According to the tax authorities, bitcoin is the most popular cryptocurrency among delinquent taxpayers (19%), followed by Dragonvein and XRP, both with 16%. The next most popular crypto is ethereum (10%) and then stellar (9%).
How do you feel about the local South Korean tax authorities seizing cryptocurrencies for tax payments? Let us know in the comments below.
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