Over $92M Worth of Crypto Income Not Declared by Japanese Firms and Traders

Japanese media outlet, The Asahi Shimbun, reports that authorities are looking into larger crypto transactions and whether they’ve appropriately been declared for tax purposes. Sources close to the publication said that there are about 50 traders and 30 firms that have not declared over $90 million worth of cryptocurrency income.

The report states that the come the following January, a new system will be implemented that allows

“tax authorities to ask private-sector exchange operators to provide the names of clients under certain conditions, such as conducting transactions exceeding a certain amount.”

The high tax rate for crypto, which is classified under miscellaneous income and can go up to 55%, has led authorities to believe that there are some under-reporting their crypto profits. The report reads,

The authorities also believe that holders of about 7 billion yen of such income made efforts to conceal their income from cryptocurrency transactions. In light of the discovery, tax authorities are apparently considering filing criminal complaints over tax evasion against those who have made especially large gains or used nefarious methods, such as masking their identity.