Is the taxman eyeballing your crypto?

Thomas Lobban of Tax Consulting SA explains why the SA Revenue Service is getting lit up about cryptos and what constitutes a tax event when ‘airdropping’, ‘staking’ and lending.

AUTHOR PROFILE

COMMENTS   4

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

Below is what was mentioned as the reason SARS wants personal information.

“According to Sars, the purpose behind the request, which has reportedly been sent to AltCoinTrader, Luno, and VALR, is for risk analysis and which would determine whether any further action would be taken. The information requested includes transactional information in relation to certain customers.”

I don’t see how they can legally ask for personal information to do a “RISK ANALYSIS”? If there is EVEDENCE of someone breaking the law yes maybe. My personal info should not be available to “assist” them in doing “risk assessments”. If there is EVEDENCE that I could have done something wrong no problem.

I am not all that certain that Crypto will be the “Golden Goose” to the extent that SARS hope it would be. Reasons:

1.) With the almost 50% pullback over the last few weeks in Crypto I suspect there are more losses than profits. These losses will be deducted from other Capital Gains SARS would normally have pocketed tax on. It will also be deducted of the “profits” made during the bull run.

2.) Many people Hodl so no tax event.

3.) Guys (or crooks) that want to “doge” (no pun intended) tax will find an off exchange way of doing it. Most using exchanges don’t have much to hide. Except for a few I suppose.

4.) Expecting to pay tax it will be managed like taking profit within the limits of capital gain exclusions etc. Tax Harvesting (legally). Less for SARS!

5.) Some (like me) don’t stake etc. because it would be an admin nightmare with regards to SARS. Exchanges don’t give tax certificates. So this also costs SARS potential taxes because no proper regulation is in place. So potential profits are not realized because of SARS!!!

It wont be as lucrative as SARS might hope for and who knows there might be more losses written off against capital gains than they might hope for.

Just buy the dips and Hodl for now.

https://www.buybitcoinworldwide.com/price/

Adjust the timeline
https://99bitcoins.com/bitcoin/historical-price/

Considered a very private, secure and appreciating alternative
https://coinjournal.net/monero/price/

Governments and their tax authorities are nothing more than racketeers. The demonetisation of crypto are futile as shown in the breakneck speed of central banks to launch their own

But with central banks using their crypto to pacify populations at the whim of the politically connected

@Mmmm – you are absolutely correct!

Besides this, apparently R1billion had been located so far, from 1 million investors. That gives on average R1000 per investor?

The resources used to hunt down R1000 per individual investor, will probably cost a lot more than this R1000.

SAID – Is die kool die sous werd?

SARS are better off trying to simplify their tax legislation and focus on a more pay as you spend strategy. The focus is more on how to dodge tax through intricate structures than to spend and keep the economy active. Yes you could make money offshore but bring it home without any fear of discrimination

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD
INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles: Advanced Search
Click a Company: