bank statements, bitcoin tax, Cryptocurrency Trading, false statements, non-compliant crypto traders, SARS, South African Revenue Services, South African taxpayer, Tax Consulting South Africa, Trading Platforms

According to a report, the South African Revenue Service (SARS) has sent out audit requests to taxpayers asking them to disclose their cryptocurrency trades and purchases. Taxpayers that fail to correctly disclose their income from bitcoin or other cryptocurrencies may be “liable to a fine or imprisonment for up to two years.â€

SARS Tracking Non-Compliant Taxpayers

In the report, which is based on statements made by Tax Consulting South Africa, cryptocurrency traders are now required to state the purpose for purchasing the digital assets. In addition, crypto traders must submit a “letter from the trading platform(s) confirming the investments and the relevant trading schedules for the period and bank statements.â€

However, as Tax Consulting South Africa observes, this changed approach by SARS could spell trouble for taxpayers. According to the tax consulting firm, “it is no longer material whether the taxpayer concerned had justification for such non-disclosure or false statement made.†Further, this change to the audit request process means “SARS is actively cracking down on non-compliant cryptocurrency traders in South Africa.â€

“It is feasible to understand that SARS is in the process of ensnaring culpable taxpayers who have not disclosed their cryptocurrency-related trading profits and/or losses,†says Tax Consulting South Africa.

The organisation surmises that the audit requests are the “primary weapon in SARS’ arsenal and the walls are closing in on non-compliant cryptocurrency traders.â€

New Paradigm Needed

Meanwhile, in his reaction to SARS “giving cryptocurrencies their due attentionâ€, Ben Zhou, the CEO of Bybit, a leading crypto derivatives exchange, says this approach “leaves something to be desired.†Zhou explains:

In the meantime, Tax Consulting South Africa is urging the country’s crypto traders who may not have disclosed their purchases to seek guidance. The organisation adds that “even if you have not purchased cryptocurrency in the past, you should proceed with caution when responding to an audit request.â€

What do you think of SARS’ new cryptocurrency taxation approach? Tell us what you think in the comments section.

Du lịch nhật bản, hướng dẫn du lịch Nhật và đánh giá địa điểm Nhật Bản Japan travel news, japan travel guides, japan holiday destinations and japan reviews

RELATED NEWS

Interactive Brokers to Launch Cryptocurrency Trading End of Summer, CEO Reveals

Interactive Brokers will add cryptocurrency trading to its platform by the end of the summer, CEO Thomas Peterffy has revealed. The platform has about 1.33 million customer accounts and $330.6 billion in customer equity as of the first quarter. Interactive Brokers to Offer Cryptocurrency Trading The chairman and CEO of Interactive Brokers (Nasdaq: IBKR), Thomas […]

Xem chi tiết: Interactive Brokers to Launch Cryptocurrency Trading End of Summer, CEO Reveals

Lawsuit Accuses Korean Crypto Exchange of $3.5 Billion Scam, Tens of Thousands Defrauded

A class action lawsuit has been filed in South Korea accusing cryptocurrency exchange V Global of defrauding investors. The police reportedly estimate that 69,000 people have invested with the crypto exchange and the damage amounts to 3.8 trillion won. Crypto Exchange Sued for Defrauding Investors South Korean cryptocurrency exchange V Global has been accused of […]

Xem chi tiết: Lawsuit Accuses Korean Crypto Exchange of $3.5 Billion Scam, Tens of Thousands Defrauded

Lawsuit Accuses Korean Crypto Exchange of $3.5 Billion Scam, Tens of Thousands Defrauded

A class action lawsuit has been filed in South Korea accusing cryptocurrency exchange V Global of defrauding investors. The police reportedly estimate that 69,000 people have invested with the crypto exchange and the damage amounts to 3.8 trillion won. Crypto Exchange Sued for Defrauding Investors South Korean cryptocurrency exchange V Global has been accused of […]

Xem chi tiết: Lawsuit Accuses Korean Crypto Exchange of $3.5 Billion Scam, Tens of Thousands Defrauded

South African Crypto Exchanges Confirm Receiving Request for Client Data From Tax Collection Body

Three leading cryptocurrency exchanges from South Africa recently confirmed receiving a request for client data from the country’s revenue collector. In a joint statement, the exchanges, (namely Altcointrader, Luno, and Valr) said this request, which targets a “selection of customersâ€, has been made “in terms of section 46 of the (South African) Tax Administration Act.†[…]

Xem chi tiết: South African Crypto Exchanges Confirm Receiving Request for Client Data From Tax Collection Body

Tiger Brokers and Futu to Offer Crypto Trading Services Outside China

Two Chinese online brokerages have set out to enter the global crypto trading market. The platforms, Tiger Brokers and Futu, are planning to offer their services only outside the People’s Republic as Beijing is once again cracking down on bitcoin trading in the country. Major Chinese Online Brokers Dive Into Crypto Trading Beijing-based Tiger Brokers […]

Xem chi tiết: Tiger Brokers and Futu to Offer Crypto Trading Services Outside China

South Korean Financial Supervisory Service Tasked With Crypto Market Oversight

The Financial Supervisory Service of South Korea will lead government efforts to oversee the country’s expanding cryptocurrency market. The agency has been tasked with the job after prolonged discussions over which Korean regulator should be responsible for the industry. Financial Supervisory Service Takes Responsibility for Crypto Sector in Korea It took the government months to […]

Xem chi tiết: South Korean Financial Supervisory Service Tasked With Crypto Market Oversight

Restrictions on Crypto Trading to Deprive Nation of Opportunities, Iranian Fintechs Warn

Startups have spoken out against government attempts to curb the operations of crypto exchanges in Iran. Cryptocurrency trading is not illegal, Iranian fintechs insist, calling on lawmakers and regulators to develop rules that would allow the sanctioned country to continue to take advantage of decentralized money transfers. Iranian Fintechs Insist There Is No Ban on […]

Xem chi tiết: Restrictions on Crypto Trading to Deprive Nation of Opportunities, Iranian Fintechs Warn

Restrictions on Crypto Trading to Deprive Nation of Opportunities, Iranian Fintechs Warn

Startups have spoken out against government attempts to curb the operations of crypto exchanges in Iran. Cryptocurrency trading is not illegal, Iranian fintechs insist, calling on lawmakers and regulators to develop rules that would allow the sanctioned country to continue to take advantage of decentralized money transfers. Iranian Fintechs Insist There Is No Ban on […]

Xem chi tiết: Restrictions on Crypto Trading to Deprive Nation of Opportunities, Iranian Fintechs Warn

Bitcoin’s Smallest Unit: Billionaire Mike Novogratz Wants Crypto Exchanges to Quote Satoshis

Goldman Sachs Formally Establishes Cryptocurrency Trading Team

Bitcoin Balances on Exchanges Are Draining, Leading Platforms See $10 Billion in BTC Withdrawn in 4 Months

US Judge Dismisses Motion Against Bancor After Finding Allegations Inadequate to Give It Jurisdiction

US Authorities Take Action to Shut Down Crypto Trading Platform Allegedly Defrauding Thousands of Investors

Hip-Hop Star Soulja Boy Examines Crypto, Considers Creating His Own NFT Collectibles

South Korean Government to Start Taxing Crypto Trading Profits in 2022

Total Cryptocurrency Market Value Hits Record $1 Trillion

Other Articles