Cryptocurrency Investors In South Africa To Face Possible Jail Time If They Fail To Pay Cryptocurrency Tax Gains

In South Africa, crypto investors are reportedly facing the possible imprisonment in the case of not meeting up to the payment of their tax dues from the profits gained by the transactions done through cryptocurrency like BTC (Bitcoin). Thomas Lobban, a legal manager, specialized in cross-border taxation under Tax Consulting South Africa, which is a part of SARS (South African Revenue Service), is expected to identify and take actions against the tax-evading crypto investors shortly.

The criminal charges against tax offenders

Lobban stated that the searching for criminal convictions against the tax offenders has become convenient for the authorities in South Africa as the audit requests were sent to the taxpayers by the tax-collecting office a year ago. It has been reported that the officials asked the payers to disclose the respective purchases and their trades. Lobban revealed that meeting their responsibilities is very significant for the taxpayers to avoid any dire consequences because the SARS department has begun a crackdown by leveling taxes on crypto users’ unspecified transactions.

Thomas highlighted that they do not have comprehensive knowledge about the proceedings for the convictions up till now; however, some examples are likely to be set soon. He elaborated that to find out if a person has willfully neglected his dues or it was because of some inability is the purpose of investigation. Nonetheless, a vast majority of taxpayers include people who do not want to abide by the imposed rules. He added that this is one of the prominent reasons behind the corruption in the government as well.

SARS’ mechanism for collecting information is advancing

Lobban advised the taxpayers to adhere to their obligations. He expressed that independent platforms of crypto have been reportedly contacted by SARS at the beginning of June to acquire the specific information regarding the respective consumers of those organizations. A lot of taxpayers are still of the view that the SARS department does not have definite knowledge about the taxpayers. They think that their tax evasion and transactions of crypto assets are immune to be traced; nevertheless, Loban clarified that the SARS’ apparatus for getting information is being worked on for improvement.

Moreover, he informed that SARS is capable of asking other governments to assist it in gathering taxes in this regard. It is also able to request the other countries’ officials to give information about the taxpayers.

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