A new tax bill has been introduced by the United States House of Representatives which will enable the exclusion of gain or loss on virtual currency. The new bill mentioned, “No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or investment if such real property is exchanged solely for real property of like-kind which is to be held either for productive use in a trade or business or investment.”
The City of Richmond Hill in the Greater Toronto Area has announced that it has entered into partnership with Coinberry (a crypto trading platform) which will allow payment of property taxes in Bitcoins. The city’s deputy mayor Joe di Paola expressed, “We believe that the demand for a digital currency payment option is only going to grow in the coming years, especially amongst millennials. Our Council was aware of Coinberry’s successful implementation of a digital currency payment service with the Town of Innisfil do the same,”
The finance minister of Georgia (a nation located Eurasia region) Nodar Khaduri has cleared a bill which will be covering regulating the taxation of entities that trade or mine cryptocurrencies. An Italian crypto enthusiast commented, “The Decision is of historic importance: it clarifies all doubts and removes the confusion on the applicability of consumption taxes to bitcoin, considering cryptocurrencies as a simple means of payment and, under a VAT perspective, similar to a foreign currency.”
The Inland Revenue Authority of Singapore (IRAS) has pronounced it plan to remove cryptocurrency transactions from its GST (goods & services tax). The documents states: “i)The use of digital payment tokens as payment for goods or services will not give rise to a supply of those tokens; & ii) The exchange of digital payment tokens for fiat currency or other digital payment tokens will be exempt from GST.”
The IRS (Internal Revenue Service) says it is making crypto tax guidelines a priority and plans to issue clearer guidance toward cryptocurrency taxation soon, but the agency has a history of moving at a snail’s pace. Last September, a group of U.S. bureaucrats wrote formal letter to IRS which read: strongly urge the IRS to issue updated guidance, providing additional clarity for taxpayers seeking to better understand…”
President of United States Of America Donald Trump has proposed a new remittance tax, which will push immigrant to adopt cryptocurrency to send money outside the country. Kris Kobach, Kansas secretary of state explained, “The threat if we follow through on it. That is the threat of ending remittances from the majority of people in the United States from Mexico who are here illegally.”
A Cryptocurrency tax software CryptoTrader.Tax has integrated with leading American tax software Intuit TurboTax. David Kemmerer, co-founder of CryptoTrader.Tax said, “You simply import your cryptocurrency trades into the platform using the technology we have built. The software will automatically crunch your capital gains and losses numbers and generate the necessary tax documents,”
The authorities in Italy have recently shares that they might be implementing blockchain technology to combat tax evasion in the country. The implementation of blockchain technology will enable the authorities to track the black money and tracking the cryptocurrencies using blockchain operation which will help in protecting the public and nation’s economy.
A town located in Ontario, Innisfil have recently shared they will be accepting cryptocurrencies as a payment method for property taxes. A pilot project which will enable the process of accepting bitcoin for tax payments has been approved in collaboration with a Toronto-based company. The other major cryptocurrencies such as Ethereum, Litecoin, Bitcoin Cash and Ripple will be accepted soon.
The Canada Revenue Agency (CRA) eyes Bitcoin and cryptocurrency users with federal tax audits. Though at present most exchanges are KYC-enabled, the audits plans to uncover all past trading activity. The CRA commented on its latest initiative. “We understand that a vast majority of middle-class Canadians pay their fair share, but it remains committed to ensuring that every taxpayer abides by the same tax laws.”