The Korea based crypto exchange has announced that it will be battling the NTS’s $69 million tax fine levied against it. According to reports, the exchange is referring to the bill as having no legal standing.
An unnamed Bithumb employee said, “we have actually paid the complete amount and clearly ready for any arguments. We are also of the belief that our stance can be clarified.”
Choi Hwoa-in, an adviser to Korea’s Financial regulator, believes this move by Bithumb has been well planned. In his own words, “the move being made by Bithumb even after they have paid the total amount is one that has been calculated.”
In November 2019, Bithumb received a $69 million levy. The NTS claimed the tax concerns foreign customer income on Bithumb. Furthermore, referring to it as a retention tax, an income tax paid to the government. This payment is done by the income payer and not the recipient.
Additionally, Bithumb had to pay the bill before passing the remaining income to its customers.
Choi Hwoa-in has, however, pointed out that Korean law does not view Bitcoin as an asset and so has no right to place taxes on it.
The NTS, on the other hand, refused to comment on the situation. Yet, it disclosed it was expecting the “Tax Tribunal Judgment.” A period of ninety days will be needed to determine if the motion is to be dismissed or granted.
That said, I think it is quite hypocritical not to recognize crypto as an asset, yet go ahead and tax it.
What’s your take on crypto taxation and Bithumb’s currently filing? I would love to hear from you.
Previously, Altcoin Buzz covered Gemini’s decision to launch a captive insurance company.