South Korean Government ways to expand its tax base, with proposals to tighten government ability to seize tax evaders’ crypto-asset directly from their personal wallets. It starts from Jan 1, 2022, said the finance ministry on Monday.
The government proposes revising tax codes so that tax-authorities can confiscate tax evaders’ crypto assets directly from their digital wallets. According to a Reuters report, the proposal forms part of a wider, annual review of the country’s tax system.
The proposal is one pillar of the government’s once-a-year review of its tax system. It seeks to revise a total of 16 tax codes. These revisions include redistributive measures to charge higher taxes on wealthy citizens and conglomerates. They are going after tax evaders to crack down money laundering and other financial crimes happening using cryptocurrencies.
The revision will lead to a decline in tax revenue of at least 1.5 trillion won($1.30 billion) between now and 2026. Due to its tax proposals for specific tax breaks to spur research and development in semiconductors, batteries, and vaccines. The government also proposed expanding tax incentives to companies for hiring, especially outside the capital Seoul.
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“Although that 1.5 trillion can’t be described as tax neutral, it isn’t that big of an amount and something necessary as we revised tax codes,” finance minister Hong Nam-Ki said at a new conference.
The ministry will submit the tax review to parliament by Sept 3. The proposal needs approval from lawmakers to make it enforceable, the statement said.
