There are reports that the South African Revenue Service (SARS) is after taxpayers in South Africa to disclose their cryptocurrency trades and purchases.
According to a report by a local news site MyBroadBand, taxpayers have received audit requests by SARS asking for the purpose for the purchase of cryptocurrency and a letter from the trading platform confirming investments and trading history and their bank statements.
According to a tax firm, Tax Consulting South Africa, confused taxpayers, including those that have never engaged in trading cryptocurrency approached the firm for clarifications.
The tax firm said that there are indications that cryptocurrency regulations are in the pipeline, and that ‘the walls are closing in on non-compliant cryptocurrency traders.’
Recently, regulators in South Africa were asking for more power to regulate the trading of cryptocurrency following the collapse of a bitcoin company responsible for what was tagged the biggest Ponzi scheme.
Tax Consulting South Africa said, “SARS is in the process of ensnaring culpable taxpayers who have not disclosed their cryptocurrency-related trading profits and/or losses.”
The firm added that looking at how things are unfolding, SARS is just beginning, so crypto traders should stay ahead of the game by taking care of their tax affairs.
“There is little doubt that SARS is pursuing non-compliant cryptocurrency traders, so it is best for these taxpayers to stay ahead of the curve and ensure that their tax affairs in order beforehand,” the tax firm added.