More Troubles for Do Kwon as S. Korea Levies $78M Tax Evasion Fine
Terraform Labs is currently being charged with tax evasion fraud by the South Korean National Tax Service, a move that complicates matters for the startup that is trying to salvage its collapsed blockchain ecosystem. Tax Evasion Charges With Proof Local news sources claim that investigations into the Terraform Labs startup commenced around June last year. CEO Do Kwon, one of the faces of the project is accused of attempting to liquidate his personal properties in order to relocate the business elsewhere. Terraform Labs is registered in the Virgin Islands and Singapore, however, for the sake of taxation, the South Korean Taxation Act recognizes companies the management operation is concentrated in the country. For Terraform Labs, a total of 100 billion won, (approximately $78 million) is due for payment. The investigations revealed that Do Kwon is unpleased with the tax policies of the country, and the broad negligence has attracted a cumulative income tax fine of 4.66 billion won on Terra Virgin and a corporate tax fine of 44.47 billion won. With many pointers showing Terraform Labs and its affiliated organizations are almost bankrupt, it is not clear how Do Kwon, who owns the majority stake in the company, will navigate the current charges against him. Will