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.”
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 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.
The Israel Tax Authority (ITA) has taken strong measures to curb unreported gains made from crypto assets and trading. Notice had been sent by the authority to all those who are under suspension of disclosed earnings through crypto. It also added pay 25% in capital gains tax every time they disposed of their holdings and 17% value-added tax for exchanges.
A local press has reported that approximately 15,000 cryptocurrency holders and taxpayers in Spain will be probed by the country’s Finance Ministry to combat tax fraud parallel with annual tax control plan by the Agencia Estatal de Administración Tributaria (AEAT). Previously, the Spanish government has demanded the cryptocurrency investors to reveal their cryptocurrency holding for tax purposes.
The French government has revealed to reduce the cryptocurrency burden by 6% next year subject to the country’s parliament approval. According to the report, the new tax will prevail as early of January 2019 if approved by the parliament. The intention expressed by the French government seems to indicate that the country has begun to adopt cryptocurrency.
The Department of Federal Revenue of Brazil (RFB) has asked the cryptocurrency exchanges operating in the country to disclose all their operations on a monthly basis. The citizens and legal companies are also mandated to disclose all the transactions entered with foreign crypto exchange above $10,000 Brazilian reals per month. The draft rules also enclose penalty provision for failure.
The Information Reporting Program Advisory Committee (IRPAC) of the U.S. Internal Revenue Service (IRS) called for more clarity on cryptocurrency taxations. A report published by the agency also quoted that the tax liabilities concerning cryptocurrencies in the U.S. amount to $25 million as revealed in a research. The committee recommended ‘the IRS issue further guidance.’