South Korean market-leading crypto exchange Bithumb may win its USD 67 million legal fight fronting the country’s tax officials, per legal and commerce officials.
In accordance with the Digital Times, critics think that Bithumb has the uppermost hand in its struggle against a tax bill served to the organization in December last year. The South Korean tax ministry stated at the time that abroad clients had been practicing the platform tax-free, and estimated that their activities had incurred a bill of $67 million – owed by Bithumb, rather than its clients.
In January this year, Bithumb began a suit against the tax authority, declaring the bill “groundless.”
And half a year later, it looks like Bithumb could favorably overthrow the bill, informed the media outlet.
Bithumb has issued an audit into the legality of the unprecedented tax bill and assumed that it had acquired “reasonable assurance” that it would not require to pay the taxman’s costs.
Nevertheless, the same media outlet said that the court’s ruling in Bithumb’s case was “long overdue,” with tax law-related cases normally settled in 90 days.
Despite this, the business seems to agree that Bithumb is unbelievable to be bound to shell out. Experts pointed out that South Korean crypto tax laws are yet to be voted on by the National Assembly, which is not currently in session. Plans to introduce a 20% tax duty on crypto dealing profits over about $2,100 are in position, but will not be published until at least October 2021.
An unspecified crypto exchange exec affirmed that the truth that the taxman had not consequently completed any additional exchange with a comparable tax bill was a definite sign that Bithumb was nearly guaranteed to win its claim.