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Reveal crypto earnings or face consequences, says South African Revenue Authority

South African Revenue Authority sent audit requests to taxpayers highlighting failure to disclose earnings from cryptocurrencies could lead to grave consequences

The South African Revenue Authority (SARS) has issued a warning to taxpayers that failure to disclose their earnings from cryptocurrencies could lead to the risk of being fined or jailed for up tp two years. In a report issued through Tax Consulting South Africa, all cryptocurrency traders must outline reasons for purchasing digital currency. 

According to E-Play Africa, Tax Consulting South Africa state:

It is feasible to understand that SARS is in the process of ensuring culpable taxpayers who have not disclosed their cryptocurrency-related trading profits and losses

While reacting to the news of the SARS report, CEO of crypto derivates exchange Bybit, Ben Zhou, stated the need for a fundamental change of approach due to the decentralized nature of cryptocurrency which he called the future of money. 

Tax Consulting South Africa has encouraged crypto traders who are yet to disclose their earnings to seek counsel regarding the non-disclosure as it is clear that all taxpayers will be taxed for crypto transactions with exemptions on cash withdrawals from trading platforms. 

This goes to say that traders are obligated to reveal all cryptocurrency transactions made for money, or other crypto purchases. The organisation further advised future crypto traders to tread cautiously in response to an audit request. 

This move comes after the Central Bank of Nigeria banned crypto trading in Nigerian financial institutions. 

Source: E-Play Africa 

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