The tax-collection agency of Israel is targeting cryptocurrency traders and investors in an aggressive push aimed at stemming tax evasion.
According to the financial daily Calcalist, the Israel Tax Authority (ITA) has taken stern measures aimed at nabbing those suspected of not reporting gains made from cryptocurrency investments and trading.
Some of the measures taken include sending notice letters to individuals suspected of not reporting their earnings from crypto trading. Per the financial daily, some of the tell-tale signs of tax evasion by cryptocurrency traders include frequent travels abroad without documentation or material evidence of how the trip’s expenses will be met. Additionally, those who own multiple real estate properties are also being targeted.
“The authority has also sent notice letters to Israelis whose activity raises suspicion of unreported earnings, such as those who travel abroad frequently without having the requisite funds on paper, or those who own over three apartments…” wrote the Calcalist.
Campaign Against Crypto Tax Evaders to Continue
Another move the Israel Tax Authority has taken includes unilaterally opening tax accounts for individuals who have been identified as having failed to report gains made from trading cryptocurrencies. The head of the Israel Tax Authority, Eran Yaakov, has vowed that the efforts to nab tax evaders in the cryptocurrency space will continue.
This comes almost two years since the ITA classified bitcoin and other cryptocurrencies as assets and it indicated it would tax them as such.
“[Bitcoin] will be considered in accordance with the Income Tax Ordinance as “assets” and their sale will be taxed as a sale of “property.” Income from their sale will be classified as capital income and capital gains will be taxed according to fixed tax rates.” CCN reported the ITA as having said in a statement early last year.