SARS Hammers Down on South Africans Looking to Use Cryptocurrency as a Tax Loophole
- South Africans hoping to avoid tax through crypto-currency platforms could be facing criminal charges according to the South African Revenue Service (SARS)
- The warning to individuals seeking a way around paying tax was given by Thomas Lobban, the legal manager for cross-border taxation at Tax Consulting South Africa
- Lobban stated that the belief held by individuals who believe that crypto-asset transactions are untraceable is incorrect and could face unexpected consequences
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South Africans could see the South African Revenue Service (SARS) striving for legal action in response to individuals who fail to pay tax on their cryptocurrency profits.
The warning to South Africans looking to find a tax loophole through crypto-currency was issued by Thomas Lobban, the legal manager for cross-border taxation at Tax Consulting South Africa.
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Lobban has expressed the falsity behind the assumption that crypto-asset transactions are untraceable and cannot be picked up by SARS. The beginning of 2021 saw SARS distributing audit requests to taxpayers asking them to disclose any cryptocurrency activity that affects their income.
MyBroadband reported on a statement made by Lobban expressing that SARS allegedly approached South African cryptocurrency platforms with a request to obtain information about the members on the platform.
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Following reports by The South African crypto investors have been warned to act in compliance with SARS and disclose any profits or losses in order to avoid any unexpected consequences. According to reports by eNCA, bitcoin ascended by roughly 2%, bringing the value to $50 249.15 (approximately R762 910).
South African fugitive and cryptocurrency developer arrested in the US
Previously, Briefly News reported that authorities in the United States have apprehended Riccardo Spagni, a well-known South African cryptocurrency developer after he allegedly fled to the country to avoid fraud accusations.
According to Fin24, charges against Spangni could land him in prison for up to 20 years. The charges he faces in South Africa are unrelated to cryptocurrency.
Spagni, also known as "Fluffypony" in the tech community, was detained on his way to Mexico from New York on July 20 and is currently in the custody of the US Marshals Service.
Missing bitcoin heist brothers say only R71 million is missing
In other cryptocurrency-related news, Briefly News reported that Raees Cajee and his brother Ameer Cajee have finally spoken out about the missing Bitcoin funds, stating that only R71 million worth of bitcoin is missing and not the previously reported R51 billion.
In a report by Fin24, the brothers explained that they have very dangerous people among their clientele and they were threatened.
The Cajee brothers, through their lawyer John Oosthuizen, stated on 25 June that they have been receiving countless death threats. The brothers allege that they didn't contact the police when the breach on the platform happened because they wanted to protect themselves and their family first, according to IOL.
Source: Briefly News
