Crypto Tax Evasion Not To Be A Problem Anymore in Japan – Crypto Tax Evasion has been a major concern for the Japanese Government. Because cryptocurrency firms have been evading a significant amount from their profits that were supposed to be taxed. The Japanese Government is now seriously considering ways to combat this tax evasion.
Reportedly, the new system that is drafted by the government will permit the National Tax Agency (NTA) to retrieve data from transaction intermediaries. Such as crypto exchanges. The NTA will be able to solicit information on customers. Who are under the radar of suspicion for tax evasion. Including their names, address and the identification number consisting of 12 digits.
Sources told the Mainichi Shimbun, one of the major newspapers in Japan, that the ruling coalition will start demonstrating. And implementing the new taxation system in late 2019. Aiming to introduce it by the new fiscal year in early 2020. Due to privacy concerns, the NTA will likely request to retrieve data only on those users. Who presumably earned over 10 million yen (approximately $88,700) by transacting in crypto.
Crypto Tax Evasion Not To Be A Problem Anymore in Japan – Under the current legal system, crypto exchanges and other businesses serving as middlemen in the crypto area. They may have the provision to submit or not to submit their user data to the NTA. In case the above-mentioned legislation is implemented. The intermediaries will still have the option to appeal requests to turn over information.
Recently in an NTA survey cited by Mainichi Shimbun, more than 300 individuals declared that they earned at least 100 million yen from crypto deals in 2017. The paper links it to a drastic market increase at the end of 2017. When Bitcoin (BTC) jumped to a record $20,000.
In early October, a Japanese taxation policy committee held a debate on simplifying the complex tax filing regime currently in place for Japanese citizens. The officials however declared that they needed a more legalized system to retrieve the users’ data.
The Financial Services Agency (FSA), the Japanese financial regulator. This also oversees the crypto industry, is planning to introduce more strict versions of Initial Coin Offering (ICO) regulations to protect investors from fraud.