As Bitcoin sets a new record every day, Israel’s tax agency, Ita, has stepped up tax reviews aimed at cryptocurrency investors.
Israel’s tax agency, Ita, has asked Bitcoin and cryptocurrency investors to report their assets for tax purposes.
Tax auditors across the country have begun taking strict measures on the market and are inspecting the sector for tax collection, the Globes reported.
Ita is said to have collected user data from exchanges operating in Israel and abroad to obtain data and information about Israeli accounts.
At the heart of ITA’s latest move lies two important reasons: lack of money and filling the Treasury’s coffers. The rise in bitcoin is said to have revived interest in taxing cryptocurrency investors.
In 2018, the Tax Authority announced that those who invest in digital currencies are subject to 25 percent capital gains unless their activities become commercial. If the activities turn into a commercial enterprise, a two-stage corporate tax or marginal tax is charged.