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 reached nearly 260 billion Korean won (close enough to $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 taken as a result local tax arrears.
A third of the cryptocurrency was taken in Seoul (at 17.8 billion won), Incheon (closer to 5.5 billion won), Gyeonggi (at 53 billion won) and the remainder in Gyeonggi (at more than 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
Is gold a good investment IRA option?
If you are looking for a way to save money, gold is a great investment. It can be used to diversify your portfolio. There is much more to gold than meets your eye.
It has been used throughout the history of currency and remains a popular payment method. It is often called “the most ancient currency in the universe.”
But gold is mined from the earth, unlike paper currencies that governments create. It's hard to find and very rare, making it extremely valuable.
The supply-demand relationship determines the gold price. When the economy is strong, people tend to spend more money, which means fewer people mine gold. As a result, the value of gold goes up.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This leads to more gold being produced which decreases its value.
It is this reason that gold investing makes sense for businesses and individuals. You'll reap the benefits of investing in gold when the economy grows.
Additionally, you'll earn interest on your investments which will help you grow your wealth. Plus, you won't lose money if the value of gold drops.
How is gold taxed within a Roth IRA
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
The rules governing these accounts vary by state. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you up to April 1st. New York is open until 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
How much gold do you need in your portfolio?
The amount of capital required will affect the amount you make. Start small with $5k-10k. You could then rent out desks and office space as your business grows. You don't need to worry about paying rent every month. Only one month's rent is required.
It's also important to determine what type business you'll run. My website design company charges clients $1000-2000 per month depending on the order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. So you might only get paid once every 6 months or so.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
Can I own a gold ETF inside a Roth IRA
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
Traditional IRAs allow for contributions from both employees and employers. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
A Individual Retirement Annuity is also possible. An IRA allows for you to make regular income payments during your life. Contributions to IRAs do not have to be taxable
How can you withdraw from an IRA of Precious Metals?
First, decide if it is possible to withdraw funds from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, figure out how much money will be taken out of your IRA. This calculation is affected by many factors, such as the age at which you withdraw the money, the amount of time the account has been owned, and whether your plans to continue contributing to your retirement fund.
Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities can accept bullion bar, while others require you buy individual coins. You'll have to weigh the pros of each option before you make a decision.
Bullion bars, for example, require less space as you're not dealing with individual coins. But, each coin must be counted separately. However, individual coins can be stored to make it easy to track their value.
Some people like to keep their coins in vaults. Some people prefer to store their coins safely in a vault. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
What precious metals can you invest in for retirement?
The best precious metal investments are gold and silver. Both are easy to sell and can be bought easily. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It is very stable and secure. It's a great way to protect wealth in times of uncertainty.
Silver: Silver has always been popular among investors. It's a great option for those who want stability. Silver tends instead to go up than down, which is unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It's like silver or gold in that it is durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It is also used to make jewelry. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also much more affordable. It's a popular choice for investors who want to add precious metals into their portfolios.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
External Links
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads, Example and Risk Metrics
cftc.gov
bbb.org
finance.yahoo.com
How To
How to Buy Physical Gold in An IRA
An easy way to invest gold is to buy shares from gold-producing companies. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. Even if the company survives, they still face the risk of losing their investment due to fluctuations in gold's price.
Another option is to purchase physical gold. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It is also easier to check how much gold you have stored. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You're also less susceptible to theft than investing with stocks.
However, there are some disadvantages too. Bank interest rates and investment funds won't help you. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. Finally, tax man may want to ask where you put your gold.
BullionVault.com is the best website to learn about gold purchases in an IRA.
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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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