Israeli Tax Agency Targets Crypto Tax Dodgers

[Alex11212]

The Israeli Tax Authority (ITA) is cracking down on cryptocurrency tax evaders, and has reportedly issued warnings to “hundreds” of Israeli crypto enthusiasts.

Per Israeli news outlet Calcalist, the ITA has “unilaterally opened tax accounts for hundreds of Israelis identified as having cryptocurrency-related revenues.”

The report says that it has identified individuals it suspects of failing to report their earnings, and quotes an unnamed official “familiar with the matter” as stating that citizens “who travel abroad frequently without having the requisite funds on paper, or those who own over three apartments” have been sent warning letters.

[glenntalbot]

This seems interesting man can you give us the link from your source? I would like to know more about this topic, since when in Israel you have to pay taxes if you are earning bitcoins?

[suhardi3899]

The question is how is the status of cryptocurrency in Israel, legal or illegal? Isn't that illegal? Then why should pay tax?

This seems interesting man can you give us the link from your source? I would like to know more about this topic

Me, too.

I want to see the authenticity of this news.

[3dOOm]

This seems to be the source: https://cryptonews.com/news/israeli-tax-agency-targets-crypto-tax-dodgers-3029.htm

[Kingofbitcoin12345]

Tax and country is a norm for crypto related regulations nowadays.. Income on trading profits has been huge since the decade ago as it started.. Israel isn’t the first or the last country that will implement such thing for more economic move towards centralisation of cryptocurrency..

If you’re a citizen of the world ,, you have the obligation to do share..

[jeromix]

LOL, cryptocurrency is not yet adapted in every country but government are already taking its action to earn in the system. Yes, this may be a good indicator that cryptocurrency will be adapted but it should have also given a time before they done taxing crypto. Anyway, for them that they could not avoid tax on cryptocurrency is to use the local exchange and the local exchange will do the taxation process.

[HeRetiK]

[...] citizens “who travel abroad frequently without having the requisite funds on paper, or those who own over three apartments” have been sent warning letters.

To be fair that's purchasing habits that raise red flags with financial authorities in other countries as well, regardless of whether crypto is involved or not.

The question is how is the status of cryptocurrency in Israel, legal or illegal? Isn't that illegal? Then why should pay tax?

Crypto is legal in Israel [1]. Also attempting to tax illegal contraband is not unheard of [2]. I mean, heck, Al Capone's main criminal charge was tax evasion [3] and his sources of income were rather questionable.

[1] https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory
[2] https://en.wikipedia.org/wiki/Crack_tax
[3] https://en.wikipedia.org/wiki/Al_Capone

[Argoo]

The Israeli Tax Authority (ITA) is cracking down on cryptocurrency tax evaders, and has reportedly issued warnings to “hundreds” of Israeli crypto enthusiasts.

Per Israeli news outlet Calcalist, the ITA has “unilaterally opened tax accounts for hundreds of Israelis identified as having cryptocurrency-related revenues.”

The report says that it has identified individuals it suspects of failing to report their earnings, and quotes an unnamed official “familiar with the matter” as stating that citizens “who travel abroad frequently without having the requisite funds on paper, or those who own over three apartments” have been sent warning letters.

It is interesting how this Israeli tax authority will check the observance of the tax laws of this country by individual citizens. So far, the tax authority has sent a warning to those who, from the point of view of this body, do not live within their means - they often go abroad or have a lot of real estate. However, it is not at all necessary that these persons have an income from cryptocurrency. While this is a warning about the voluntary payment of taxes. How will the government act if these citizens do not show their profits in cryptocurrency? This question is of interest to many, since it concerns the possibility of determining the object of taxation in cryptocurrency and its enforcement. The question is in principle: is it possible.

[olubams]

The Israeli Tax Authority (ITA) is cracking down on cryptocurrency tax evaders, and has reportedly issued warnings to “hundreds” of Israeli crypto enthusiasts.

Per Israeli news outlet Calcalist, the ITA has “unilaterally opened tax accounts for hundreds of Israelis identified as having cryptocurrency-related revenues.”

The report says that it has identified individuals it suspects of failing to report their earnings, and quotes an unnamed official “familiar with the matter” as stating that citizens “who travel abroad frequently without having the requisite funds on paper, or those who own over three apartments” have been sent warning letters.

While I don't see anything wrong in tracking down tax evaders because I believe there is nothing wrong in complying with the law and there is no excuse.for it at the same time, its better to see the good side in this which means for government to decide to commit its resources in terms of money and capital into this, it surely means they are not going after the small boys hiding behind crypto to avoid tax that can be used for the betterment of the society.

[Harlot]

This is good news but we still have a long way to go to clear out the industry with this criminals, it's not even possible to eradicate them completely but they must know that cryptocurrencies are not for the use in illegal activity they should not thrive in the market place as we are the ones who will suffer the most if the government has changed their views regarding on how they will impose the regulation in our respective countries. Let us all think clearly hear this news might not be seen as something that the government is against cryptocurrencies but we should see it as they are against the abusive users of it.

[Kemarit]

I don't see any issues with the government collecting tax from crypto earnings, and it seems that Israel deemed crypto as legal so its logical to come after those tax evaders. Although a hefty 30% tax? that's too heavy that's why a lot of Israeli doesn't like the idea of the taxman collecting from their hard earn profits. So it looks like they are panning out their local exchanges first to see a glimpse on who's who on terms of crypto's in their country. So I guess we're going to see this pattern from some countries to tax crypto enthusiast in the long run so I guess we need to be prepared as well.

[BitcoinForeverYoung]

Most probably would get taxes back, instead of paying taxes. Unless we are talking 2016, 2017 still. Because 2018 everything went pretty much down, in some cases by 95%.