A South Korean city is reportedly planning to seize the digital assets of more than 5,000 residents who owe back taxes.
According to a new Daegu Shinmun report, the Nam-gu (South District) office in Pohang plans to go after digital assets owned by residents who owe more than 500,000 won or $369 in taxes.
Officials believe that 5,208 tax offenders appear to have digital assets on four South Korean cryptocurrency exchanges – Bithumb, Upbit, Corbit and Coinone – based on transaction data.
If officials confirm that a tax offender owns digital assets on these platforms, they will reportedly freeze the account, prohibiting any transaction or withdrawal. If the tax bill is not paid, officials plan to seize and sell the digital assets to cover what is owed.
The Kyungbuk Shinmun reports that the effort is called the “2024 Local Tax Delinquent Collection Comprehensive Plan” and aims to collect 6.6 billion won or $4.9 million in back taxes. City officials estimate that residents have failed to pay about 16.5 billion won ($12.2 million) in taxes.
said Jeong Hae-cheon, head of the Nam-gu district office.
“We will raise awareness among chronic offenders and prevent loyal taxpayers from feeling lost by not only confiscating and selling virtual assets, but also by introducing various tailor-made collection techniques suitable for the digital age.”
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