Japan to make cryptoexchanges report tax evasion suspects

Japan to make cryptoexchanges report tax evasion suspects
Dec 4, 2018 by Rico Wise

Local media outlets report that the measures would authorize the NTA to demand the cryptoexchanges to give data regarding the users who are tax evasion suspects. The government is intending to present this within the framework of the tax reforms, which are scheduled for publishing in the beginning of financial year 2019. The legislation might become implemented around 2020, subsequent to the expiry of the publication period.

As of now, the Income Tax Act treats income accumulated from cryptotrading o digital asset related financing as miscellaneous profit. The legislation demands that those employees that make a minimum of 200,000 yen from cryptotraders and financing per year must declare such revenue as income.

An increased number of the Japanese makes a lot of money from cryptotrading and financing digital currencies subsequent to the historic bullish movement of cryptocurrencies witnessed at the end of previous year. Back then, over 300 people declared earnings of at least 100 million yen from cryptotrading and related financing activities. However, the NTA claims that the number of tax evasion cases is growing, as the number of reported profits is too small.

Currently, cryptoexchanges have the only requirement of voluntary data provision to the NTA regarding their customers. Still, the reforms would demand the exchanges to provide such information on an obligatory basis, with the personal data including such details as personal identification numbers, addresses and names.