In response to US sanctions towards Russian economy, Russian seems to figure out a way to pass the financial barriers using crypto. Recently, the Russian State Duma, Anatoly Aksakov response positive regarding the idea to establish Crimea as a crypto tax haven and said, “Here, there are all conditions for it. In addition, local companies need investments, and attracting them through tokens is a good option.”
U.S Tax filing deadline is fixed on 17th April and only small fractions of cryptocurrency holders in America have submitted their investments report. A data released by Credit Karma showed that less than 100 people out of 250,000 disclosed their crypto investments and crypto gains under the capital gain tax.
The South African Revenue Service (SARS) announced that the bitcoins are attracted to the tax ambit. It affirmed that cryptocurrencies, though not recognized as a legal tender, people have to pay tax on them. The entities that support crypto payments have to disclose such income in their accounts and the crypto investors will have to meet capital gain tax.
A research conducted by Fundstrat Global Advisers have revealed approximately cryptocurrency owners in the U.S have owed $25 billion in tax. The high numbers were reported leaving cryptocurrency owners under pressure to sell off their digital assets and cryptocurrency exchanges such as Coinbase reported to have the net profit for more than $1 billion in 2017.
The new bill which will entitle people to meet their tax liabilities by using bitcoin and other cryptocurrencies was submitted to the Arizona Senate. The bill detailed, “The Department will convert cryptocurrency payments to United States dollars at the prevailing rate within twenty-four hours after receipt and shall credit the taxpayer’s account with the converted dollar amount”.
The digital cryptocurrency exchange based in San Francisco, Coinbase, prompted its customers to pay their taxes by raising a banner at the top of their dashboard. The banner read “Please remember to pay your taxes” which directs to a tax FAQ page. Quoting that Coinbase cannot advice on taxes, it linked to Internal Revenue Service (IRS) that would issue strategies on tax payment.