Government Tax Audit Successfully passed by Bithumb

South Korea’s largest cryptocurrency exchange Bithumb has been cleared of all charges connected with alleged tax evasion for 2017
08 June 2018   1166

The decision to descent the accusations was declared on June 8, after the intensive audit of Bithumb’s accounting records. The exchange paid its normal tax bill of $28 million in won in the middle of April.

The Tax Service has conducted a review of the accounting records of the years from the 2014 to 2017 business years. Bithumb has paid the appropriate fees and taxes without objection. Although a very large tax amount was imposed, it does not mean that there was any implication of tax evasion from the exchange. No charges of tax evasion have been or will be pressed against the exchange at this time.
The Official,
National Tax Service, South Korea

Bithumb claimed about a net profit of 427.2KRW for the year 2017, a 171-fold rise from its benefit of 2.5 billion KRW in 2016. As reported, the audit started in January of this year, when the South Korean National Tax Service located several agents from its Seoul office at Bithumb’s headquarters. Within the next 3 months the officials collected data demanding the income that the exchange was gaining from trading commissions. The profits from virtual currency dividend was also recorded.

Bithumb has affirmed that they had not been reported about the results of the investigation prior to the public announcement; the National Tax Service made contradictory statements. TheNews.Asia in their report underlined that the smooth passage of the audit “highlights an increased trust and stability in the Korean cryptocurrency market.”

Bithumb Filed Appeal Against Korean Tax Office

Looks like the korean exchange doesn't really want to pay an additional tax worth $67 000 000
16 January 2020   219

The South Korean cryptocurrency exchange Bithumb has filed a complaint against the National Tax Service (NTS) because of the requirement to pay additional taxes for the transactions of its foreign customers.

The company claims that cryptocurrencies do not have an official status in the territory of South Korea, which is why the authorities cannot have sufficient reasons to levy any taxes.

The tax court will have to decide within 90 days whether to retain or withdraw from Bithumb the obligation to pay the $ 69.1 million tax that was assigned to it by NTS in November. The Office declares that the withdrawal of income from accounts in Korean won by foreign residents is a taxable event. It is assumed that the exchange itself had to withhold tax from its foreign customers.

We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.

 

Bithumb

 The ministry has its own position on this issue.

Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear. The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry opinion on the same matter it sought again.

 

Choi Hwoa-in

Adviser to Financial Supervisory Service

According to the expert, the NTS maneuver is well thought out and aimed at starting to levy a tax on income that is currently not taxable.

We cannot comment on the ongoing matter. We will await the judgment from the Tax Tribunal.

 

NTS

Earlier, Bithumb was ordered to pay an additional $ 67 million in tax.