Paju City Collects Unpaid Taxes Through Virtual Asset Seizures

Paju City Collects Unpaid Taxes Through Virtual Asset Seizures

Paju City in Gyeonggi Province has taken a novel approach to collecting unpaid local taxes by seizing virtual assets of tax defaulters. According to Yonhap News, the city successfully collected 100 million won (approximately $82,000) in unpaid taxes using this method. The city conducted an investigation to identify tax defaulters with unpaid taxes exceeding 1 million won ($820) who also had virtual asset exchange accounts. This investigation revealed 64 such defaulters with a total unpaid tax amount of 650 million won ($533,000). Paju City then proceeded to seize the virtual assets of these defaulters and disposed of a portion worth 100 million won to settle the unpaid taxes. The remaining 180 million won ($147,000) is expected to be collected through further sales or collection efforts. This innovative approach to tax collection demonstrates the increasing importance of virtual assets in the modern financial landscape. It also highlights the proactive measures that local governments are taking to ensure that all citizens fulfill their tax obligations. The success of Paju City's initiative may encourage other municipalities to explore similar strategies for addressing tax evasion and improving revenue collection.