Cryptocurrency

A Simple Look at Andreas Thiemann’ Paper: Cryptocurrencies: An Empirical View from a Tax Perspective

Andreas Thiemann, Cryptocurrencies: An Empirical View from a Tax Perspective, 9 J. Tax Admin. 88 (2024) Abstract This paper analyzes the potential for taxing capital gains from cryptocurrency, particularly Bitcoin, and its economic impact. Using data from Chainalysis, it simulates the tax revenue from Bitcoin capital gains in the EU in 2020. The author claims that this is the first paper to empirically assess the tax revenue potential from Bitcoin capital gains in the...

Cryptocurrency

A Simple Look at Sergio Avalos’ Paper: Challenges that Cryptoasset Anonymity Creates for Tax Administrations

Sergio Avalos, Challenges that Cryptoasset Anonymity Creates for Tax Administrations, 9 J. Tax Admin. 66 (2024). Abstract P66 “The virtual currency market has grown significantly worldwide in the last decade. Innovations have made it necessary for the concept of cryptocurrencies to be broadened to include so-called “cryptoassets”. Countries differ in their legal frameworks for the taxation of cryptoassets and in how they address the challenges that cryptoassets create for tax administration. The pseudonymity of...

Cryptocurrency

Preparing for Cryptocurrency Tax Investigations in Japan―A Practical Guide to Reducing Stress During Tax Audits―

Are you feeling anxious about potential tax investigations related to cryptocurrencies, NFTs, or other tokens? We frequently receive questions such as: “What is the process of a tax investigation?” “What happens during a tax audit?” “Can tax authorities track my transactions on overseas exchanges or decentralized exchanges (DEXs)?” “How much additional tax might I owe after an investigation?” In this guide, we outline the essential steps for individuals and corporations trading or holding cryptocurrencies...