South Korea’s National Tax Service levies an additional $78 million in taxes on Do Kwon on tax evasion charges

According to South Korean news outlet Naver, Do Kwon, the founder of Terra, was ordered by South Korea’s National Tax Service to pay about $78 million in taxes just days after Terraform Labs’ legal team resigned.

Terra loses more form: Do Kwon faces tax evasion charges

The CEO has been fired since the network collapsed. However, he had some plans in mind in an attempt to revive Terra Chain. The tax authorities in South Korea found Terra’s parent firms, The Ancore Company and Terraform Labs, guilty of dodging corporation and income tax.

Terraform Labs sent LUNA from the Singapore-based company to Luna Financial Guard, as discovered by the authorities (LFG). The Korean National Tax Service decided to transfer the funds to the LFG to avoid paying taxes.

Although LFG and Terraform Labs were incorporated in Singapore, South Korean tax officials determined that they must pay taxes in the country because of their “place of actual management.” A South Korean senator spoke out earlier to summon Kwon to review the Terra car crash.

According to the research, CEO Kwon owns 92% of Terra Singapore. While Daniel Shin, the CEO of Chai Corporation, who previously denied any connection to Terra, owns about an 8% stake. Meanwhile, Chin is listed as a registered director of the company in the report.

In October, after an investigation by the Korea Tax Agency, Terra Virgin was fined 4.66 billion won (approximately $3.64 million) in income tax. A corporate tax of 44.47 billion won (approximately $34.7 million) has also been imposed. The tax authority added that Terra founded the Luna Protection Foundation (LFG) to avoid paying taxes.

As AZCoin News reported, one of Korea’s largest law firms, LKB & Partners, has also decided to sue the founder of Terraform Labs.

According to a report in the daily Munhwa Ilbo, LKB will file a complaint against Kwon, a Korean citizen, on behalf of investors, on behalf of ordinary investors with the Seoul Metropolitan Police Agency. According to the article, some LKB workers were able to join the action because they lost money in the UST crash. According to the report, in addition to filing a police complaint, LKB decided to file a temporary order attaching Kwon’s assets at the Seoul Southern District Prosecutors’ Office to take them away. LKB is said to be considering suing Daniel Shin, another Terra co-founder.

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