Israeli’s Tax Authority has undertaken a renewed effort over the past two weeks to catch up with people who are not accurately reporting crypto earnings.
Reporting from Calcalist indicates that the regulatory body has been opening tax accounts for hundreds of citizens who have unreported earnings from cryptocurrency.
One source told the publication that letters are going out to those who the authority suspects of having unreported earnings. This could include people who have more than three apartments or those who seem to travel more than would be suspected with their reported income, according to an Israeli official.
Israeli Tax Authority head Eran Yaakov indicated the agency is going to keep dedicating efforts towards seeking out those who have unreported earnings.
Authorities Keeping A Close Eye On Cryptocurrency
The recent activity by the Tax Authority comes on the heels of other crypto-related mandates seen throughout 2018.
Early in the year, the regulatory body said cryptocurrencies would be subject to a capital gains tax of 25% levied onto private investors. Businesses would be required to pay a marginal rate of 47%.
Companies who were selling cryptocurrencies were subject to a VAT tax rate of 17%. The Authority said investors needed to report their holdings in order to arrange tax payments.
In July, the Israeli-based Bits of Gold exchange reached an agreement with the Authority to pass along information pertaining to large deposits. Regulators are reportedly reaching out to other entities in the field to strike similar partnerships.
Shifting Markets Leading To Shutdowns
CryptoGlobe recently covered reports that mining giant Bitmain will close the doors of its Israeli development center after laying off the entire 23-person staff.
The center mainly focused on research-related projects that pertained to processor chips, the Connect BTC mining pool, and further development of blockchain infrastructure.
In a statement, Bitmaintech Israel leader Gadi Gilkberg said the crypto market shakeup led the company to “examine its various activities around the globe and to refocus its business in accordance with the current situation.”
Overall, the falling prices of bitcoin (BTC) and bitcoin cash (BCH) have made mining far less lucrative in recent months.