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 exceeded 260 billion Korean won (roughly $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 that over 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 (at close to 5.5 billion won) and Gyeonggi (at 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 precious metal should I invest in?
Answering this question will depend on your willingness to take some risk and the return you seek. Although gold has been considered a safe investment, it is not always the most lucrative. Gold may not be right for you if you want quick profits. You should invest in silver if you have the patience and time.
If you don't care about getting rich quickly, gold is probably the way to go. If you want to invest in long-term, steady returns, silver is a better choice.
How to Open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should be filled within 60 calendar days of opening the account. After this, you are ready to start investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process will look identical to an existing IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS stipulates that you must have earned income and be at least 18-years old. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Contributions must be made regularly. These rules apply to contributions made directly or through employer sponsorship.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, physical bullion will not be available for purchase. This means you won't be allowed to trade shares of stock or bonds.
There are two major drawbacks to investing via an IRA in precious metals. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. Second, they don’t produce dividends like stocks or bonds. You'll lose your money over time, rather than making it.
What is a Precious Metal IRA, and how can you get one?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These metals are known as “precious” because they are rare and extremely valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This ensures that you will receive dividends each and every year.
Precious metal IRAs have no paperwork or annual fees. Instead, you pay only a small percentage tax on your gains. You can also access your funds whenever it suits you.
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- 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)
- (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was accepted worldwide and became popular due to its durability, purity, divisibility, uniformity, scarcity, and beauty. In addition, because of its value, it was traded internationally. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). The result was a decrease in foreign currency demand, which led to an increase in their price. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. They needed to pay off debt because they had too much money coming into circulation. They decided to sell some excess gold to Europe in order to do this.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. However, many European nations stopped using gold to pay after World War I and started using paper currency instead. The gold price has gone up significantly in the years since. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
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
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