The Tax Agency Of South Africa Is Aimed At Cryptocurrency Traders Evading The Taxes
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.
The South African Tax Agency is studying the methods of identifying cryptocurrency traders who evade taxes, the acting head of the department mentioned.
The South African tax service is exploring ways to identify non-compliant cryptocurrency traders, to investigate any situation without declaring returns on investment, mentioned acting Commissioner Mark Kingon, speaking at the Institute of Internal Auditors SA conference in Johannesburg.
An inappropriate trader will be considered after he is identified, the official said. It is assumed that most traders used credit cards to purchase crypto currency.
Kingon said that while the tax authority had certain ways – without any specific features, in addition to studying credit card purchases – to identify the cryptocurrency traders, it lacked an effective clear-cut way to combat tax evasion, as traders are also engaged in activities outside the country.
The South African Tax Service assigns responsibility directly to traders and miners to declare profits or losses from the cryptocurrency as part of their taxable income in accordance with standard rules.