Japanese tax agency investigates hundreds of cryptocurrency tax violations

National Tax Agency (NTA) of Japan has revealed that it has recently investigated hundreds of cases of tax violations related to cryptocurrency. The NTA released its annual tax investigation report before the weekend, which includes a section on cryptocurrency taxation. The data in the report and a report from Japan's CoinPost show that the agency conducted 615 investigations into cryptocurrency held by Japanese residents in the 2022 fiscal year. The NTA noted that it had discovered 548 cases of tax violations, a significant increase from the previous fiscal year. In the 2021 fiscal year, the NTA conducted 444 investigations related to cryptocurrency and discovered 405 violations. However, the value of tax violations related to cryptocurrency seems to have decreased, which may reflect the global decline in cryptocurrency prices.

The NTA added that the average amount of unreported income in cryptocurrency-related cases in the 2022 fiscal year was about $206,000 per case, lower than the $245,000 per case in the 2021 fiscal year. The total value of unreported income in the 2022 fiscal year was $126.5 million, higher than $110 million in the previous year.