The Israeli Tax Authority (ITA) has starting coming down hard on cryptocurrency tax evaders, stating that they’ve issued warning to “hundresds’ of Israeli-based crypto-owners.
The Israeli-based news Calcalist reported that the ITA has “unilaterally opened tax accounts for hundreds of Israelis identified as having cryptocurrency-related revenues.”
It goes on to say that the ITA has manage to identify these individuals who are suspected of failing to report their earnings, and quoting an unnamed official “familiar with the matter” on the statement of citizens “who travel abroad frequently without having the requisite funds on paper, or those who own over three apartments”, who should’ve gotten their warning letters.
The Israeli law defines digital assets as financial assets, and taxes earning at a total rate of up to 30%.
In it’s long marching crusade to get a hold of these crypto tax evaders, the ITA has been attempting to convince crypto exchanges based in the country to inform the agency when companies or individuals make an unusually large deposit.
Even with all of these problems, cryptocurrency continuous to run strong in the country. Just during the previous month, the Bank of Israel published a summary for a report done by the interdepartmental team established during November 2017, which was tasked with investigating any possible benefits of issuing a digital version of the national currency, the shekel. The conclusion stated that there was no current reason to develop a digital shekel at the current moment, but did state that there was “a need to continue examining the issue and monitoring developments.”
While Tax evasion is never a good thing to try and pull off, it’s interesting to see how fiercely the ITA is going after these individuals they allegedly have proof of not reporting their cryptocurrencies. The one question that remains, is if they’ll be able to convince those exchanges to report on their consumers or now?
Let us know your thoughts.