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 its Commissioner, the agency is exploring ways to better identify those that are profiting from trading digital assets and check if they are evading taxation.
Identifying Traders is Key, Commissioner Says
SARS, 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 acting Commissioner of the authority, Mark Kingon, revealed quoted by Fin24. During a conference organized by the Institute of Internal Auditors in Sandton this week, Kingon remarked:
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 official emphasized that identification is the main issue and the most critical aspect, Pressportal relayed. 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.
Mark Kingon also noted that while the agency has its procedures in place to identify traders, dealing with the issue is not straightforward. Many of the South African crypto investors are actually using foreign bank accounts and some are conducting their transactions in other jurisdictions.
“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.
Regular Tax Rules Apply to Crypto Incomes
Earlier this year, the South African Revenue Service decided that the regular tax rules should apply to incomes and profits from crypto-related transactions. Taxpayers in the country were told they were expected to include gains and losses from trading cryptocurrencies in the taxable income reported on their tax returns.
“The onus is on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it is received or accrued. Failure to do so could result in interest and penalties,” SARS warned in April, as news.Bitcoin.com reported. Along with the statement, the authority acknowledged it had received many calls to clarify the matter and provide guidance on reporting crypto incomes for taxation purposes. It also insisted no separate interpenetration of the regulations was needed.
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. In July, the South African Treasury put forward several amendments to the country’s tax legislation including, according to local media reports, a proposal to exempt crypto traders from VAT (value-added tax).
What is your opinion on crypto taxation? Share your thoughts on the subject in the comments section below.
Source
Plagiarism is the copying & pasting of others work without giving credit to the original author or artist. Plagiarized posts are considered spam.
Spam is discouraged by the community, and may result in action from the cheetah bot.
More information and tips on sharing content.
If you believe this comment is in error, please contact us in #disputes on Discord
Revenue Service on crypto allow ppl to raise and progress for its good and bright future indicating .
Good
very good project
very enlightening nice one
ok !
GOOD PROJECT
Good project
i think it's good project
thanks for share
I love this project I am sure it will definitely go places with my prediction
This will provide room for transparency. Nice one here
Woow
Not surprising, as crypto grows all taxing authorities are going to be drooling.
Great!
Just when we thought crypto have come to stay
PERFECT I LIKEEEEEEEEEE
good project
Thanks for sharing
Its really a nice project
Nice
awsome job ! great team !
Excellent airdrop for cryptoworld community.
nice project
Wish this project achieve his Goal
Wonderful project and unique idea good luck.
very good project
Amazing news for us.
Cool
Amazing post!
Great project
good project
Nice project, good luck
Glad to be part of this great journey.
I believe this is an great project which is much interesting and innovative. thanku for providing such an super work.
sucesso absoluto e grana extra a todos nós
Great project and an excellent effective and innovative team.
Great project and an
Excellent effective and
Innovative team.
- irvyn
I'm a bot. I detect haiku.
good job
Congratulations @supportyou!
Your post was mentioned in the Steemit Hit Parade for newcomers in the following category:
I also upvoted your post to increase its reward
If you like my work to promote newcomers and give them more visibility on Steemit, consider to vote for my witness!
great project
Nive
Nice
great project, good luck
I dont think it a welcome idea, the crypto world should be a decentralized one.
nice Project!!!!!
Nice project
good job
interesting info
Congratulations @supportyou! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :
Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word
STOPDo not miss the last post from @steemitboard:
SteemitBoard and the Veterans on Steemit - The First Community Badge.
good project
very interest
Teslacoin to the moon
great project
Woow
nice