Authorities in Japan are planning to pursue crypto traders in the country over under-reporting of their crypto-based profits according to a new report released today. According to Asahi Shimbun, a local Japanese newspaper, larger crypto transactions could be tracked in an effort to identify trades that are not being declared for tax purposes.
This follows the finding of some 50 traders and 30 companies in the Asian nation that had not declared their crypto income worth over 10 billion yen ($92.3 million) over the past few years.
However, it’s understandable why so many crypto traders would be unwilling to report their crypto earnings given that cryptocurrency earnings are classified as “miscellaneous income” and can be taxed up to 55 percent. In comparison, gains from trading stocks are taxed at 20 percent.
The report indicates that an investigative team from the Tokyo Regional Taxational Bureau had asked some crypto exchanges to submit clients’ transaction data over the past year and this allowed the agency to build a list of accounts that had made sizeable earnings over the period.
The data from the crypto exchanges combined with data that was collected from regional tax offices around Japan that suggested crypto traders had attempted to conceal around 7 billion yen ($9.26 million) in crypto income for tax reasons.
Due to that, the local news daily said that tax authorities were contemplating filing complaints about tax evasion against crypto traders who may have hidden larger incomes or employed other illegal ways to do so.
You may also be interested in;
- Hacked crypto exchange back on track after being rescued by a Japanese publicly listed company London based cryptocurrency firm becomes the third to secure an E-Money license
- Japanese court: Embedding software to Illegally mine cryptos is not “socially unacceptable”
- Japan’s financial heavyweight starts manufacturing virtual currency mining chips