The Israeli Tax Authority (ITA) is cracking down on cryptocurrency tax evaders and has already issued warnings to hundreds of Israeli cryptocurrency holders and enthusiasts, according to the report of local news media Calcalist
Thus, the ITA has unilaterally opened tax accounts for hundreds of Israelis identified as having cryptocurrency-related revenues trying to force them to pay taxes on their digital holdings.
The report says that it has identified individuals it suspects of failing to report their earnings and quotes an unnamed official “familiar with the matter” as stating that citizens who travel abroad frequently without having the requisite funds on paper, or those who own over three apartments have been sent warning letters.
As it was stated earlier, the Israel Tax Authority said that bitcoin isn’t a currency and people buying and selling the cryptocurrency will be subject to tax. In addition, the tax authority also clarified that only businesses would be liable for the 17% value-added tax, not individuals because bitcoin is an intangible asset used for investment purposes only.
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