The profits many make from cryptocurrency trading are currently eclipsing $10,000s for larger traders. Considering the significant part of many people income crypto trading has become, Japanese authorities have proposed increased powers to be given to the National Tax Agency to crack down on tax evaders.
Currently the powers of the government remain limited as reforms only allow require who earn over 200,000 Yen a year via crypto trading are required to disclose their earnings on a self report basis. While the system is found in many countries including the US, Japan has been facing a increasing number of tax evaders utilizing crypto for increased profits.
However the National Tax Agency can also request personal details of crypto traders from exchanges if they have reason to believe a individual is involved in tax evasion. This is currently achieved through a formal request rather than legally compelling exchanges to divulge such information. In a bid to catch tax evaders, the National Tax agency aim to implement the reforms by 2019 in corporation with exchanges located in Japan. After the reforms have been passed by the government, the NTA can legally demand personally identifiable information such as a names, and even the 12 digit citizen number assigned to citizens. Furthermore the reforms also set out that only users that the state believes have earned more than 10million Yen are likely to be targeted and have failed to disclose half of their earnings.
However in accordance with democratic procedures business and exchanges will also be in their own right to appeal such demands by undertaking legal procedures.
The tracking is set to move on into fiat transactions as the state looks to crackdown on bank accounts associated with tax evasion and money laundering. With a increasing number of users using false identities in Japan to open up banking accounts, the reforms will also include powers to allow the NTA access to users banking information if they suspect tax evasion.
Disclaimer : The author or BTC.NG do not condone crypto trading where it is illegal. Always abide by local laws when trading crypto as BTC.NG or the author can not be held legally liable for any illegal activity. We do not condone tax evasion so please pay appropriate taxes on your crypto trades.
