The South African Internal Revenue Service has sent out requests to taxpayers holding cryptocurrencies to disclose their trading activities and pay taxes.
The South African Tax Service is interested in cryptocurrency traders. According to the publication MyBroadband, the agency sent inquiries to a number of taxpayers who, in turn, contacted the tax preparation company Tax Consulting South Africa.
The taxpayers who receive the letters must indicate the reasons for buying the cryptocurrency, as well as provide detailed information about any transactions on the trading platforms and bank statements. According to Tax Consulting South Africa, the IRS ‘actions mean the government is planning tough measures against tax-evading local cryptocurrency traders.
“It can be assumed that the IRS is in the process of identifying those responsible for tax evasion of citizens who did not disclose their profits or losses associated with trading cryptocurrencies,” the company said in a report.
Recall that last fall, the South African regulator proposed a bill under which crypto assets would be treated as financial products. Recently it became known that South African regulators will strengthen control of the cryptocurrency industry due to the closure of the fraudulent scheme Mirror Trading International, which managed to collect 23,000 BTC worth more than $ 700 million.
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