Bithumb Receives Additional Tax Claim For $ 70 Million

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Bithumb Receives Additional Tax Claim For $ 70 Million

South Korea Internal Revenue Service Issues Bithumb $ 69.5 Million Additional Invoice For Cryptocurrency Trading.

Such a huge claim came to the company due to the fact that, according to the inspectors, until January 2018, the exchange did not correctly withhold income tax from foreign customers. As a result, all income of non-residents was attributed to other income and actually recognized as assets, therefore, instead of personal income tax, a capital gains tax rate of 22% was applied to the entire amount..

Bithumb disagrees with this amount and plans to file legal action against the tax claim to correct the calculations.

In theory, the exchange can withhold funds from foreign clients retroactively, but this is practically impossible to do..

Situation occurred on the eve of legal reforms regulating the taxation of profits from operations with cryptocurrencies, which are due to be adopted in 2020. The inspectors may have expedited the process before the five-year deadline for filing tax claims has expired.

Crypto & Bitcoin Taxes Explained – Everything You Need To Know | CryptoTrader.Tax

Many researchers admit that the traditional tax system does not work effectively enough, therefore, in order to eliminate the human factor, they decided to use artificial intelligence and big data to detect financial fraud..

text: Ivan Malichenko, photo: Shutterstock

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