South African tax authority steps up crypto audits on undeclared assets Crypto exchanges are mandated to share data upon request.
The South African Revenue Service (SARS) has issued a warning to crypto holders and traders to declare crypto assets on tax returns.
With more than 5.8 million South Africans reportedly holding digital currencies, SARS is increasing compliance in the sector.
To ensure transparency, SARS has teamed up with the Financial Sector Conduct Authority and is sourcing information from local exchanges.
It follows Reports SARS has begun issuing notices to crypto traders, requesting information on digital assets, including historical records, which may result in tax liabilities for previously undeclared assets.
While licensed exchanges such as Luno and VALR do not share client data by default, they have indicated that they will comply with legal requirements if SARS requests the information for specific investigations.
SARS Commissioner Edward Kieswetter highlighted the agency's intention to improve compliance, saying tax evaders unfairly affect honest taxpayers and limit the government's ability to fund essential social programs.
He is Warned: “SARS haunts all without fear, favor or prejudice.”
However, Vaihan Oliver, partner and head of fintech and digital assets at Forvis Mazars, thinks SARS' heavy-handed approach is not the best.
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He is mentioned The agency encourages compliance more effectively through the clear guidance that “you can catch more flies with honey than vinegar.”
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