Bitcoin tax evaders are being sought for in South Africa by the state authority. This is because the South African Revenue Service is working to improve the tracking of cryptocurrency traders and their transactions in order to verify if they are paying taxes.
According to Mark Kingon, who is the acting Commissioner of the authority, the South African Revenue Service, is actively looking into ways of identifying people that are trading cryptocurrencies to establish if they are avoiding taxes due on their incomes.
The Institute of Internal Auditors in Sandton this week organized a conference. During the conference, Mark Kingon said:
“The key thing is identifying people who are trading because it’s easy to say cryptocurrency gains must be deductible, but there are also those who lose. That’s why it’s important to identify the trader.”
The acting Commissioner of authority, emphasized that identification is the main issue and the most critical aspect. He went on to explain that as most traders use credit cards to purchase digital assets, once a noncompliant trader is properly identified, SARS can launch an investigation into the case.
South Africa has its procedures in place to identify traders, however dealing with the issue is not always straightforward, said Kingon.
“The world is getting smaller and we are getting far more people transacting in foreign jurisdiction,” the commissioner said, adding that common reporting standards will enable authorities in different countries to do better in that respect.
The popularity of cryptocurrencies is continuing to grow among South Africans and in the region as a whole, and the need for clarity in regards to crypto taxation has increased.
But what do you think could be done to track bitcoin tax evaders? And what do you think about crypto taxation?