South African Tax Agency Incorporates Cryptocurrency into Its Compliance Program

Golden Finance reported that the South African Revenue Service (SARS) announced that it will include cryptocurrency assets in its compliance plan. The revenue service is seeking information on cryptocurrency users from the Financial Sector Conduct Authority (FSCA) and cryptocurrency service providers.

SARS recently stated that it felt it necessary to take this step after noticing that taxpayers were not declaring cryptocurrency assets and transactions on their tax returns. According to the statement, South African law requires SARS to account for all income and assets, including cryptocurrency.

In its latest comments on the issue, SARS stated that it is working to simplify compliance for taxpayers and traders. At the same time, tax officials emphasized the consequences of intentional tax evasion. To achieve this goal, SARS stated that it has strengthened its audit team and adopted the latest technology.