- The National Tax Service said it will add virtual asset (digital asset) transaction-tracking programs and upgrade its AI forensic system to block tax evasion using cryptocurrencies.
- The National Tax Service plans to encourage related reporting by including enforcement against tax evasion using digital assets among its key policy tasks for strengthening tax justice and by expanding rewards for tax evasion tips and hidden-asset disclosures.
- The National Tax Service said it will focus its tax-audit capacity on real-estate tax evasion such as cut-rate transfers and sham transactions involving multiple-home owners, as well as tax evasion tied to unfair stock-market practices including stock-price manipulation, duplicate listings and share-price suppression.
Forecast Trend Report by Period
South Korea’s National Tax Service will strengthen its response to tax evasion involving virtual assets, or digital assets, including by adding more transaction-tracking programs.
In an Aug. 12 tax administration plan centered on overhauling delinquent-tax management and rooting out antisocial tax evasion and nonpayment, the agency said it will introduce additional digital-asset transaction-tracking programs and upgrade its artificial intelligence-based forensic system. The aim is to expand infrastructure for tracing cases in which virtual-asset transactions are used for tax evasion or asset concealment.
The agency also plans to encourage more tipoffs on tax evasion and hidden assets as part of institutional changes to expand reward payments for such reports. It included enforcement against tax evasion using digital assets among its key tasks for strengthening tax justice.
The National Tax Service will also tighten oversight of large tax arrears. It said it will operate a 10,000-member management team for overdue national taxes and other state revenue to assess outstanding arrears that have accumulated to 130 trillion won ($93.9 billion).
