News about Taxation in Crypto Market
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.”
Cannabis sales (is legal in some states in the US) are liable for taxation, but many banks in the United States refuse to do business with as it is associated with drug. Assembly Member for California, Phil Ting thinks Cryptos offer a solution here, he said ““It’s dangerous enough transferring our product around. It makes it doubly dangerous transferring all the cash around.”
A tool for accounting and preparing taxes on cryptocurrency holdings has been launched by Big Four auditing and professional services firm Ernst & Young (EY), called EY Crypto-Asset Accounting and Tax (CAAT). The new tool aims to enhance the accounting and tax calculations for digital currency transactions by both institutional customers.
Cryptocurrency remittances to be regulated by the Venezuelan government with a month limit and commission of up to 15% of the transaction amount will be collected. The decree stated, “The sender of the remittances referred to in this ruling is obliged to pay a financial commission up to a maximum amount of 15% calculated on the total of the remittance.”
The bill which proposed the state’s resident to pay for their taxes in cryptocurrencies submitted by two U.S representative from New Hampshire has been approved following the steps taken by Ohio that also accepts cryptocurrency payment for taxes. The newly-approved bill has allowed the state residents to pay for taxes in cryptocurrencies from 2020.
A blockchain-powered accounting company have pressurized the Internal Revenue Service (IRS) to update its existing guidelines on crypt0-taxation policy. The guidelines on cryptocurrency-related industry issued by IRS on 2014 were incomplete. The CEO of Libra, Jake Benson have asked the IRS to clarify the methodology used by the organization in determining the eligibility for a tax refund.
A bill that proposed the usage of cryptocurrencies for tax payments purposes has been introduced in Indiana and New Hampshire. The bill requires approval from the state government before being fully implemented. The authorities also require to set-up a framework to allow the usage of digital currencies for tax and fee payments by July 1st 2020.
According to the report, the cryptocurrency-related taxes will be effective in April for Chile’s residents confirmed by Chile’s Internal Revenue Service. In a document prepared by the SII explained, “purchase and sale of bitcoins, or any other virtual or digital assets must be declared on the Form No. 22, on the Annual Income Tax Return.”
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