December 14, 2017 IBOMLLC Team

South African Revenue Service wants to tax Bitcoin Traders income in South Africa

Innov8tiv
Innov8tiv – Blacks In Technology in USA, UK, Caribbean Islands & Africa

According to a report by MoneyWeb, the South African Revenue Service (SARS) is currently in talks with tech companies in how they can jointly start tracking Cryptocurrencies trading. While in reality tracking blockchain transactions is very difficult, recent development has proved it is not impossible.

SARS group executive for research, Randall Carolissen said, “We are talking to some of the top technology companies in the world that (are) doing similar work for Canada and the U.K., and we are hoping to get that technology.”

Taxing earnings on Bitcoin trading in not something new, and are actually taxed under the capital gains tax. However, the biggest problem the taxman faces when it comes to taxing cryptos is the taxpayer can simply under-state or not state at all their Bitcoin earnings. Given the inherent difficulty in tracing the blockchain technology on which cryptos ride on, the taxman has very little options to prove a possible tax evasion by the taxpayer, which would be a crime.

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