The Korean Exchange giant, BitThumb

The Korean Exchange giant, BitThumb

The Korean Exchange giant, BitThumb, has filed a lawsuit with Tax Tribunal against the groundless tax application by the National Tax Service (NTS). BitThumb recently reported on this undertaking and shared with the community as Cryptocurrency and its derivatives are not legally controlled by any regulatory bodies and hence lacks any imposition of tax on it.

The Tax Tribunal Body has taken 90 days to see into this complaint and conclude to a solution. The lawsuit is to retrieve the lost USD 69.1 Million, which BitThumb had paid previously when NTS had imposed the tax. A withholding fee, also known as a retention tax, is an income tax paid to the regulatory body by the payer of the income rather than by its receiver. This aims to say that the income tax has to be paid by the Exchange giant itself, that is, BitThumb should pay to NTS first rather than its Users. Agreeing to the rule and have spent the amount, BitThumb organization is now coming together with prepared proofs and regulations to win back the paid amount. The NTS reported gains withdrawn in Korean currency, which won by accounts held by foreigners are taxable income.

Many financial supervisors are supporting BitThumb, saying that Bitcoin is not an asset under the given laws and jurisdiction. Many believe that NTS has imposed a tax on BitThumb so that it can gain control over the transactions by cashing in the form of charge and to lay ground rules to control it.

Bithumb is filing a lawsuit after paying the full amount in that sense is a calculated move expecting partial to a total return of the amount paid, said Choi Hwoa-in, an adviser to Financial Supervisory Service. This was one of the top response to this lawsuit.

The Judgement of the Tax Tribunal much awaited as there is a mixed opinion by the public, regulatory bodies, and crypto users.