The Israeli Tax Authority has begun the hunt for crypto taxes

The Israeli Tax Authority has begun the hunt for crypto taxes

The Israel Tax Authority (ITA) is taking action against cryptocurrency tax evaders and has issued warnings to Israeli crypto traders.

The ITA “unilaterally opened tax accounts for hundreds of Israelis identified as having cryptocurrency-related income.”

The regulator says it has identified individuals suspected of hiding their income from cryptocurrency transactions. Citizens who “frequently travel abroad without having confirmed funds, or those who own several properties (more than three)” are suspected of such concealment. Warning letters have been sent to these individuals.

Under Israeli law digital coins are defined as “financial assets” and are taxed at up to 30% - although the government recently announced that this will give investors flexibility in how they choose to declare them. However, this year the ITA is trying to tighten the screws and convince crypto platforms based in the country to inform the agency when companies or individuals conduct large transactions.

Attitude regulatory authorities for the crypto industry in the country is not clear. Former Prime Minister Ehud Barak criticized cryptocurrencies, calling "bitcoins and other coins" "Ponzi schemes" but emphasized the merits of blockchain technology.

And last month, the Bank of Israel published a summary of the report of an inter-ministerial group created in November 2017 year, whose task was to study the possible benefits of issuing a digital version of the national currency - the shekel. The group concluded that there is no need to create a digital shekel “in the near future,” but said that “it is necessary to continue to study the issue and monitor developments.”

You May Also Like

142018-10-04

Russia is preparing to adopt cryptocurrency laws

To prohibit or allow, regulate or ignore cryptocurrency - these issues have been discussed in Russia for a long time. While legislative bodies are arguing about the future of cryptoassets in the country, Russians have accepted the presence of innovative technologies in their lives as a fact.

Regulation
212018-12-17

Japan publishes draft report on new cryptocurrency regulation

The report provides solutions to problems that are not currently covered by existing laws. Namely: hacking, self-regulation, purported dealers, privacy and margin trading.

Regulation

Latest articles from Regulation category

Fresh video on our Channel