Tax evasion is a serious offence worldwide, but it seems especially for those involved in the crypto market, there is a perpetual target on their back. Just last month we had reported how Thailand’s revenue department is clamping down on tax evasion, it looks like Israel is following suit.
The Israel Tax Authority (ITA) is taking strict measures aimed at vetting out instances of tax evasion from the country. It is especially targetting crytpo traders and investors, who have been making gains from cryptocurrency investments and trading.
Before you proceed, you might want to check out our piece on ‘‘Things You Should Know About Cryptocurrency Taxes’.
The financial daily Calcalist has reported that the Government is sending notice letters to individuals who they suspect are not reporting their earnings from crypto trading. Certain indicators like frequent travels abroad without documentation or concrete evidence of how the trip’s expenses will be covered, is a dead givewaway for those who are guilty of evading taxes. The daily wrote,
“The authority has also sent notice letters to Israelis whose activity raises suspicion of unreported earnings, such as those who travel abroad frequently without having the requisite funds on paper, or those who own over three apartments…”
Additionally, those who own multiple real estate properties are also being investigated for the crime. The ITA has also opened unilateral tax accounts for defaulters who have failed to report gains made from trading cryptocurrencies. Bitcoin and other cryptos were marked as an asset liable for taxation almost two years ago.
Eran Yaakov, the head of the Israel Tax Authority has pledged his commitment to keep up these efforts to identify tax evaders in the country. The country has been in the news recently for a lot of new developments. Back in October, ‘Israel’s Microsoft Branch Partnered With Blockchain Israel To Launch New Academy‘. The country has been progressing at a rapid speed when it comes to cryptocurrencies and blockchain developments.