SARS looking to investigate cryptocurrency traders who don't pay tax

Anastasi Mokgobu 

SARS looking to identify cryptocurrency traders who dodge taxes.

South African Revenue Service is digging to identity the traders who don't pay tax. Cryptocurrency has gained momentum in South Africa since the introduction of Forex and Bitcoin. The traders are making good profit and it is reported that most of them are dodging tax.

Acting South African Revenue Service commissioner Mark Kingon has stated they are investigating how to clearly identify cryptocurrency traders. According to a report by the City Press, Kingon said this was needed so anyone dodging taxes could be tracked.

While SARS expects users to pay tax on cryptocurrency trade gains, it was “still trying to find a clear-cut way of identifying the traders”.

“The key thing is identifying people who are trading, because it’s easy to say cryptocurrency gains must be deductible, but there are also those who lose. That’s why it’s important to identify the trader,” he said.

SARS announced earlier this year that normal income tax rules apply to cryptocurrencies, meaning taxpayers must declare profits or losses as part of their taxable income.

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