South Korea’s National Tax Service has slapped Terraform Labs with a 100 billion won (US$78.6 million) tax evasion fine, reported Hangkyung.
This comes after an investigation in June 2021 saw that the cryptocurrency company evaded corporate and income tax by setting up shop in Singapore and the Virgin Islands.
The company also reportedly transferred Bitcoin and Luna through Terra Singapore and Terra Virgin to Luna Foundation Guard. National Tax Service counts this as income.
Despite operating overseas, South Korea’s Corporate Tax Act considers Terraform Labs’ “place of actual management” as domestic due to decision-making being done locally.
It is unclear if the fine already includes the assessed tax amount. The fine may change after cryptocurrency gains have been evaluated.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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