Israel Tax Authority to open season on crypto tax dodgers

Posted 10 December, 2018

Israel Tax Authority (ITA) is getting tough with the companies and individuals which evade reports of crypto earnings. 

The news reports read that the regulator has sent notifications reminding the need to pay taxes to the individuals that can earn money from crypto investments and trading. 

Specifically, ITA believes that often international trips, numerous real estates (houses, apartments) can indicate that an individual can have unreported crypto earnings.

For reference, Israel has classified cryptos as a financial asset rather than a currency. In this context, crypto trading activities are subject to 25-30% capital gains tax in Israel. Besides, local trading platforms dealing with digital assets also have to pay 17% VAT.

As commented ITA representative, the authority keeps looking for unreported earnings. Numerous tax cases have been launched against possible tax payment dodgers in the crypto market. Israel delayed approval of the AML rules this summer citing insufficient development of the proposed anti-money laundering.

Notably, Israel's tax authority stated in early 2018 that it would not revise the current taxation approved for the crypto segment in the near term.

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11 December, 2018 11:48

← UK must tighten crypto AML policy, FATF stated

The UK may tighten crypto market monitoring facing pressure from the Financial Action Task Force. The authority released the December report citing that these measures are required for prevention of anti-money laundering and counter-terrorism financing actions. It was discovered during the evaluation that local system for reporting suspicious activities must be revised and updated. FATF added that some players (real estate agents and traders) do not fully realize the risks in terms of the money laundering via cryptos as well as their role in this process.

UK must tighten crypto AML policy, FATF stated

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10 December, 2018 11:50

CoinAlpha fund fined $50,000, SEC reported →

The US Securities and Exchange Commission slapped crypto fund CoinAlpha Advisors LLC with a fine after determining that the company marketed securities without a corresponding license. The company will have to pay a $50,000 fine as well as pay back all funds to the investors. The fund received $608,491 from its 22 investors. It was stated that the fund failed to take sufficient security measures – the company did not follow KYC policy in terms of clients' verification. SEC notified the fund about that fact and only afterwards the latter engaged a third-party company to check the accreditation of the investors.

CoinAlpha fund fined $50,000, SEC reported
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