crypto to avoid tax?

[bitbit97]

Well, my question is how do the government know we are holding crypto and how much we had if we are keeping our assets anonymously? Maybe they are getting personal information from the local exchanges because that is the only way they can control since local crypto exchanges are compliant to local SEC. But here in my country there is no clear regulation regarding taxation but maybe they'll have to implement it for the income tax I am not that sure.

There is a chance, that when persons submits an annual income tax return, his expenses does not much the amount he has spend, and it leads to a request to pass personal audit. For example when you earn $1000 per month, but buy a car that is worth $100k, it look suspicious. Or people have food store clients cards that give discounts. They a personal and through them it can be noticed that person spends a lot, and relate it to his earnings. Even a thrown away tv box can tell that a person has money. There are little nuances, little flags, little indicators everywhere that tells that persons spends more than earns. And next it will be a matter of time when a person on a freewill gives information about his crypto address.

If someone uses crypto to avoid tax. That person can do that only for a minor expenses. Cant hide car, house, land purchase by that. I dont know if there is such practice in your country, but in some European countries, when your purchase for more than 1000 EUR, you can might get asked to provide ID. Guess what it is done for ?

[luckyledger]

If they use regulated exchange and perform KYC verification honestly, then i doubt they plan to use crypto to avoid tax. After all, they should know those exchange would give data to government upon request and cryptocurrency usually have transparent blockchain (you can see sender, receiver and amount sent).

And while i'm not familiar with South Korea's law, it's definitely weird they claim they'll confiscate crypto from tax evader when there are other ways to collect the unpaid tax.

СEXes would definitely do that if they had reasons for it.
So the situation is really.. extraordinary.
Why they wouldn't do it in fiat..

[tequilla_sunset]

If you ask me I'll say privacy and anonymity id the proof here . That's because firstly the government cannot seize funds or coins from you if they have no records of you buying those coins. If you check , it very likely to find out that the persons that got their coins seized had them on an exchange ( which is obviously a centralised exchange) or they bought their coins from a centralised exchange.

Taxation is something everyone tries as much to avoid however In some regions and countries taxation rules are very strict and difficult to avoid per say. It may not seem fair but if that information is correct then I really don't think there is much they can do rather than just pay off the debt.

Probably that's the case - the exchange gave the needed info, and the gov took the needed steps to push the case forward.
Some countries do try to regulate the crypto to the brim, but a compromise should be found.

[Bobcrypto]

paju city, a city in south korea, has sent out notices to 17 people who were actively avoiding paying their taxes the authorities have threatened that if by the end of November and these citizens still have not yet paid their debts, the authorities will seize their crypto assets

they say it’s because many citizens hold their money in crypto to avoid paying taxes and they can get away with it because crypto is not legalized as money in the country

do you think it is only fair for the government to seize these citizens’ crypto or is this just a way for them to accumulate crypto when they could choose any other asset to pay for the taxes?

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Some times I think that certain governments uses this tax as  a means of raising income, or a form of revenue. It tells me that crypto is superior to Fiats, especially if people begin to convert their earnings to crypto. Obviously, converting faits to crypto is not necessarily because they want to avoid paying tax but I think crypto is an asset class and a hedge against inflation.

Government can make claims that certain individuals are avoiding tax payments by switching to crypto but I think that people are wiser knowing that government may find it difficult to manage inflation, and sometimes, they even print more money. It is not fair at all, some time it could be accumulation strategy, or a government revenue drives.

[Findingnemo]

paju city, a city in south korea, has sent out notices to 17 people who were actively avoiding paying their taxes the authorities have threatened that if by the end of November and these citizens still have not yet paid their debts, the authorities will seize their crypto assets

they say it’s because many citizens hold their money in crypto to avoid paying taxes and they can get away with it because crypto is not legalized as money in the country

do you think it is only fair for the government to seize these citizens’ crypto or is this just a way for them to accumulate crypto when they could choose any other asset to pay for the taxes?

read more

Citizens are liable to pay the necessary incurred taxes no matter in what form they hold and people avoid paying taxes in all the fields and some may consider that if they hold their crypto in crypto they can hide away from the government records but it's unlikely possible due to the integration of KYC in the centralized crypto platforms so they have the identity linking to address means users need to report their taxes as per the reports or they will be facing legal charges sooner or later.

[robelneo]

do you think it is only fair for the government to seize these citizens’ crypto or is this just a way for them to accumulate crypto when they could choose any other asset to pay for the taxes?

There is a penalty for not paying your taxes because the government's sustainability depends on taxes. I'm not saying its fair to seize these cryptos, but the government should first give them warnings that its their obligation to pay their taxes and not seize them right away.
If they still decline, then the government has no choice but to seize their crypto; they have to understand their obligation.

[Ujok]

as far as i know, everyone in south korea is allowed to own cryptocurrency by buying it through an official exchange appointed by the government... so owning cryptocurrency should have a history of the transaction, right? although it is possible to get it through other means, but at least when you want to do a conversion, it still requires an official exchange and banking service which should be easy for the government to track... or maybe there is something i don't know that makes it difficult for the government..

Yes, South Korea allows to use or store digital currencies only. The South Korean government taxes crypto users, and they also have rules for crypto users to pay individual taxes. The tax rules will require investors to pay high taxes on annual profits exceeding 2.5 million won (about $1,800). In contrast, capital gains tax on stock trading in South Korea only applies to profits exceeding 50 million won (about $36,000). This difference has drawn significant criticism from the crypto community.

[Blaze]

There is a penalty for not paying your taxes because the government's sustainability depends on taxes. I'm not saying its fair to seize these cryptos, but the government should first give them warnings that its their obligation to pay their taxes and not seize them right away.
If they still decline, then the government has no choice but to seize their crypto; they have to understand their obligation.

It is true that taxes form the basis of the running of services and development that are constructive to all of us. Payment of taxes should be viewed as one of the actions in supporting growth of a better system for everyone in the society. However, the government also should educate and inform this obligation with good and clear communication to the community before trying to put more pressure to make bigger awareness of public responsibility.

Yes, South Korea allows to use or store digital currencies only. The South Korean government taxes crypto users, and they also have rules for crypto users to pay individual taxes. The tax rules will require investors to pay high taxes on annual profits exceeding 2.5 million won (about $1,800). In contrast, capital gains tax on stock trading in South Korea only applies to profits exceeding 50 million won (about $36,000). This difference has drawn significant criticism from the crypto community.

While it is possible to have created an equal structure between crypto and stocks, the different tax provisions inhibit this possible fairness in the eyes of investors. Of course, such regulations are intended for the stabilisation of the economy, but equal treatment of various types of investments is very necessary for achieving people’s trust. It will be more effective if the government of each country also takes information from the crypto community to determine the rules so that they are not only fair but also helpful in the development of financial technology in the future.

[dave_strider]

as far as i know, everyone in south korea is allowed to own cryptocurrency by buying it through an official exchange appointed by the government... so owning cryptocurrency should have a history of the transaction, right? although it is possible to get it through other means, but at least when you want to do a conversion, it still requires an official exchange and banking service which should be easy for the government to track... or maybe there is something i don't know that makes it difficult for the government..

Yes, South Korea allows to use or store digital currencies only. The South Korean government taxes crypto users, and they also have rules for crypto users to pay individual taxes. The tax rules will require investors to pay high taxes on annual profits exceeding 2.5 million won (about $1,800). In contrast, capital gains tax on stock trading in South Korea only applies to profits exceeding 50 million won (about $36,000). This difference has drawn significant criticism from the crypto community.

But where do they check the total assets of the person, on CEXes, and so on?

[luckyledger]

do you think it is only fair for the government to seize these citizens’ crypto or is this just a way for them to accumulate crypto when they could choose any other asset to pay for the taxes?

There is a penalty for not paying your taxes because the government's sustainability depends on taxes. I'm not saying its fair to seize these cryptos, but the government should first give them warnings that its their obligation to pay their taxes and not seize them right away.
If they still decline, then the government has no choice but to seize their crypto; they have to understand their obligation.

The government obliges to the rules, nothing special. However, the framework itself can be worked around differently and better. And the regulations themselves too.
The sum at which the penalties would be applied is comparatively low, though.