Authorities Investigating Crypto Tax Evasion in Japan
MTax authorities in Japan have been investigating tax evasion of cryptocurrency transitions. The numbers have been up for discussion as many people have been reporting lower gains than they actually made. This comes after it was announced that pay capital gains tax must be paid on crypto transactions.
The National Tax Agency has already investigated a grand total of 1600 people this year. They were checking into the claims from last income tax season, according to the Nikkei Asian Review . After that, about 250 more cases will be investigated. These investigations will continue through the next year as well.
Failing to File Means Penalties
Cryptocurrency exchanges in Japan are obligated to file user tax reports by February 15th of every year . If you fail to do so, it’s possible that you’ll face penalties or even jail time if proven guilty.
Japanese authorities carried out a large-scale investigation in the Kanto region, including cities such as Saitama, Tochigi, Gunma, Niigata and Nagano. They found that only about 20% of cryptocurrency investors reported their gains or losses on crypto assets.
This was possible through a new system where exchanges match up data supplied by users and what they actually owe to the government.
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Author: Moni Talks
Moni Talks is a cryptocurrency trading exchange and social platform that is dedicated to the crypto community.