Japan’s Crypto Traders May Face Closer Scrutiny Over Tax Avoidance

June 5, 2019
69 Views

Japanese tax authorities are planning to take action on the under-reporting of cryptocurrency-based profits.

According to a report by The Asahi Shimbun on Wednesday, the newspaper’s sources have said that larger cryptocurrency transactions could be tracked in an effort to identify trades that are not being declared for tax purposes.

The potential move has been prompted by the finding that some 50 traders and 30 firms in Japan had not declared cryptocurrency income worth over 10 billion yen ($92.3 million) over the last few years, the sources said.

The level of tax under-reporting is likely due to the high rate at which crypto earnings are taxed. Classified as “miscellaneous income,” crypto gains are taxed at up to 55 percent. By comparison, earnings from trading stocks are taxed at 20 percent.

According to the report, an investigative team at the Tokyo Regional Taxation Bureau asked some cryptocurrency exchanges to submit clients’ transaction data in 2018, allowing it to build a list of accounts that made sizable earnings

That, along with data collected by other regional tax offices around Japan, suggested to authorities that traders with around 7 billion yen ($9.26 million) of such income had attempted to conceal it for tax purposes.

As such, Asahi Shimbun says the tax authorities may file criminal complaints over tax evasion against traders who hid larger incomes or employed illicit means to do so.

Yen and bitcoin image via Shutterstock

https://www.coindesk.com/japans-crypto-traders-may-face-closer-scrutiny-over-tax-avoidance

You may be interested

Russia Is Getting Serious About Blockchain, but Remains on the Fence About Cryptocurrencies
Blockchain
1 views
Blockchain
1 views

Russia Is Getting Serious About Blockchain, but Remains on the Fence About Cryptocurrencies

btcethereumadmin - June 16, 2019

Crypto was a hot topic at a forum featuring Russia’s top people from the economic sector. Last week, an annual…

Accept Direct Crypto Payments Using the Rocketr Gateway
Crypto News
13 views
Crypto News
13 views

Accept Direct Crypto Payments Using the Rocketr Gateway

btcethereumadmin - June 16, 2019

It’s in the best interest of businesses to offer their customers a variety of payment options. Cryptocurrencies can undoubtedly bring…

Indian Crypto Community Petitions Government for Regulation
Bitcoin
2 views
Bitcoin
2 views

Indian Crypto Community Petitions Government for Regulation

btcethereumadmin - June 16, 2019

Following widespread reports of the upcoming Indian cryptocurrency bill, the crypto community has started a petition for the government to…

Leave a Comment

Your email address will not be published.