Connect with us

Blockchain

Do Kwon Claims Terraform Labs Paid Taxes In Full In South Korea

Do Kwon claims Terraform Labs paid taxes in full in South Korea, refuting the reports that the company owes $80 million in taxes to the government so let’s read more today in the cryptocurrency news. A lot has been happening recently with Terra and the crypto project after the failure of the two native digital […]

Published

on

Do Kwon claims Terraform Labs paid taxes in full in South Korea, refuting the reports that the company owes $80 million in taxes to the government so let’s read more today in the cryptocurrency news.
A lot has been happening recently with Terra and the crypto project after the failure of the two native digital assets in the past two weeks. One of them included owing $78 million in taxes to the South Korean government but Do Kwon claims Terraform Labs paid the taxes in full. The reports showed the events that transpired two weeks ago when UST, the algorithmic stablecoin issued by tErra lost the peg against the dollar.

Understand why this would be interesting to look at for gossip but not sure if its relevant to anything thats going on
Korean govt needed money to shore up covid spending, creatively charged millions from crypto companies, and we paid our share in full – all there is to it
— Do Kwon (@stablekwon) May 21, 2022

This allowed users to profit by arbitrage trading against LUNA and tanked both assets’ prices. As of now, LUNA trades at $0.00016 and UST is about $0.06. Being the person behind the Terra ecosystem Do Kwon attracted a lot of negative attention from being harassed to being in the middle of multi-million dollar bets and looking for a solution to a desperate situation. Another blow came earlier this week when the reports emerged claiming that Terra had to pay $79 million in taxes to the government in South Korea. Kwon said that they don’t have outstanding tax liabilities in Korea and added that the local tax agency conducted a tax audit but the company had been paid in full.
According to the reports by Naver news, the South Korean regulators fine the Terraform Labs and the co-founder with a $78 million penalty for tax evasion charges. The reports outlined that Kwon was unhappy with the crypto taxation in the country since a year ago and tried to liquidate Terra’s domestic operations before the Terra crash happened. Terraform Labs came under fire from tax authorities last year on suspicions of evading corporate and income tax and the investigation into Terraform Labs revealed the company was registered in the Virgin Islands and in Singapore. Both of the subsidiaries were registered abroad and the place of the actual management was South Korea. According to Korea’s corporate tax act, the place of the actual management is considered for tax purposes rather than the registered country.
Korean exchanges are under scrutiny with the new legislations.
The Tax authorities were alerted after Terraform Labs sent LUNA from Singapore to the Foundation Gaurd in order to avoid taxation or makeup losses of the Anchor protocol.