Israeli Tax Agency Is Seeking Crypto Holding Disclosure

The Israeli Tax Authority (ITA) is sending notices to the residents asking them to disclose their digital currency holdings for taxation purposes.

As reported by Globes last week, the tax department has sent notices to dozens of Israelies who own digital currencies. Additionally, it is seeking data from Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term both inside Israel and abroad that are offering cryptocurrency purchasing services to Israelis.

“We have information about your activities that does not match your tax return,” the tax notices read.

Further, the ITA applied the EU Common Reporting Standards (CRS) regulations to automatically receive information on the activities with the funds parked in Europe by Israelies.

Currently, the Israeli tax agency levies a 25 percent capital gains tax on crypto profits. However, this is only applicable to individual investors and not for commercial enterprises.

Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term Rally Alerted the Taxman

According to the local industry experts, the interest of the tax department in crypto investment was fueled by the recent rally of Bitcoin as it believes that crypto traders have started to cash out from cryptocurrencies.

“The Tax Authority renewed its interest in this area recently as a result of two factors: lack of money and a desire to fill the public coffers, where this resource could help,” Adv. Leor Nouman, Chairman of the Tax Practice Group at the law firm, S. Horowitz & Co., told the publication. “The second main consideration is that Bitcoin has rallied.”

A similar approach of tax departments was seen in the United States and many European countries as well. The IRS started to send fresh warning letters to American citizens, claiming discrepancies with the income and paid taxes.

Meanwhile, properly taxing crypto incomes is still a headache among global agencies. South Korea is actively trying to bring crypto tax rules in the country, which was recently postponed until 2022.