The rising value of bitcoin has attracted the Israeli Tax Authority and, has led to the government requesting the value of crypto holdings of residents of the country for taxing purpose.
According to a report by Globe, the Israeli Tax Authority (ITA) are sending notifications to Israeli digital currencies holders, asking them to disclose their assets to be taxed accordingly.
The report also states that the ITA is sending letters to wallet holders instructing them to disclose and report all assets and income.
Based on the report, the Israeli Tax Authority (ITA) obtained crypto owners data by applying the EU Common Reporting Standards (CRS) which approves the exchange of financial account information and receipt of data of Europe-based funds and accounts held by Israelis.
Bitcoin finally settles at $27k mark after gaining up to $28,000 to set new all-time high record. The current price of bitcoin is $27,221.58, slightly dropping by 0.40% in the last 24 hours. The market cap for bitcoin for the first time crossed $500 billion mark, with current market cap of $505.85B and market volume of $52.43B. Currently, 18,583,512.5 bitcoins are in circulation.
Stats and Image from Coin Desk
ITA also gained data through the FATCA agreement, which conveys the US Internal Revenue Service (IRS) data to Israel.
“Inquiries have also been submitted to cryptocurrency exchanges in Israel and around the world, to obtain information about Israelis trading in these currencies,” the report said.
According to Adv. Leor Nouman, chairman of the tax practice group at S. Horowitz & Co. law firm, the renewed interest of the Israeli government in taxing the crypto industry is either because of ‘lack of money and desire to fill the public coffers’ or because of the continues rise in the value of bitcoin.