The Special Tax Inspectorate (STI) is probing various cases involving Belgium citizens involved in cryptocurrency investments. The cryptocurrency market attracts 33% tax on income generated through investments. The traders were mandated to declare their crypto investment details on their tax returns. The STI has uncovered several cases for investigation.
Coinbase cryptocurrency exchange has issued notices to its 13,000 customers that it will report their data to the tax authority. The US Internal Revenue Service mandated the exchange to submit customer details for tax purposes. ‘Taxpayer ID, personal information, and historical transaction records’ was demanded after the IRS won a case claiming the exchange holds unreported capital gains.
The barristers in Arizona proposed a bill that will entitle citizens to meet tax obligations by bitcoin payments. The bill read, “The Department of Revenue shall convert crypto payments to U.S. dollars at prevailing rate and credit the taxpayer’s account.”
The government announced that the South Korean cryptocurrency exchanges had to pay taxes up to 24.2%. As per the existing law, it is identified that corporations earning income beyond 20 billion won have the tax obligation of 22% corporate tax and 2.2 percent local income tax. The crypto exchanges will have to pay their corporate tax by the end of March and local income tax in April.
The Inland Revenue Board charged an investigation in Luno, London based cryptocurrency exchange. The Luno bank accounts in Malaysia were frozen as per the order so as to audit whether the company had complied with the regulations as per Income Tax Act. It was also aimed to determine whether the company had involved in any money laundering activities. It was emphasized that all Malaysian traders should adhere to the law maintaining proper records for audit.
The Israeli Tax officials had come up with a circular containing new regulations for cryptocurrencies. It elucidated cryptocurrency as an asset and listed the taxation obligations to be met by companies. Cryptos as assets will attract capital gain tax. A spokesperson said that the draft will be open for the public to comment on the same for 14 days.
The leading cryptocurrency exchanges were raided by police officials and tax agencies in South Korea concerned over tax evasion. An official from the Coinone exchange said, “they think what we do is gambling”. Bithumb exchange was also asked to produce paperwork. The financial authorities also claimed that inspection on six local banks that transact digital currencies was carried out.
The South Korean government had stated that ‘corporate taxation is possible’ under the present law. The News1 Korea reported that, ‘at present it is concluded that the taxation of income tax, corporation tax and transfer income tax are possible in the case of virtual currency, while taxation of virtual currency is difficult in terms of value added tax’.
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.
The governing council member of European Central Bank called for the government to formulate regulations and taxation of bitcoin. He coined cryptocurrency as a tool for money laundering. “We need a value added tax on bitcoin, since it is not a currency”, said Ewald Nowotny, head of Austria’s Central Bank.