Do you really want to avoid paying taxes on your cryptos?
Hi traders! Remember, i wrote 3 weeks ago about evading the tax office and not declaring your income? Well, last time we discussed Finlands Tax Office being on the trails of those, who don't declare their taxes and identifying more than 3000 people.
Now, according to various reports, Israel Tax Authority has upped the game one more notch. In Israel, if you are cryptocurrency trader, you must pay an income tax of 25% of yours gains. But if you are a cryptocurrency business, you pay an additional 17% VAT.
Ok, not a problem - i'll pay when they come knocking. Oof, big mistake. Tax Authorities don't come knocking, they bust your door. Well, not literally, but - as the Israel Tax Authority does not want to mess around - should they find out your connections to some cryptocurrency related transfers without declaring your gains, they will legally charge you with the full power of the law and demnad the 25% income tax along with the 17% VAT, considering all who hold out, a business.
credz: pixabay.com
Are you not a cryptocurrency business? Good luck proving that and wasting your resources and time. Anyone caught or linked to holding out will also probably be slapped with hefty interest plus the need to audit and re-do their tax reports up to 5 years back, adding their cryptocurrency holdings and keeping the books balanced. One mistake and the carousel starts again.
Funny is the fact that some of the tax offices are not even interested in additional information from you before they send you the notice. According to various reports, the tax offices are in cahoots with most of the local banks, as they are well-known for they hostility towards various cryptocurrencies, as well as monitoring multiple social networks, Telegram, Whatsapp, Facebook and multiple others, for direct peer-to-peer transfers.
credz: pixabay.com
The data is then cross-referenced with multiple other pieces of information and along with bank balances, tranfers, chat logs and your shoe size, an experienced investigator can easily put together the full picture.
The question here is - even if you don't have to deal with Israely Tax Authorities, even if your country's tax laws are much more lenient - do you want to hold out declaring your taxes? Even the anonymous money often leaves a trace. Is it worth losing your sleep over, sometime in the future?
You can be sure, most of the government requests to pay your taxes afterwards come with hefty interest requirements + audits.
Start doing your plan now. Your health will thank you later.
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