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...

Cryptocurrency

Japanese National Tax Agency’s Tax Audits: Cracking Down on the Sharing Economy and Cryptocurrencies

The Japanese National Tax Agency (NTA) has significantly ramped up its tax investigations, especially in emerging sectors like the sharing economy and cryptocurrencies. But how intense is this crackdown, and what does it mean for taxpayers in these fields? Let’s break down the trends. Tax Audits Double: A Closer Look at the Numbers From fiscal years 2020 to 2022, the NTA’s on-site investigations nearly doubled, rising from 24,000 to 46,000. This sharp increase is...