Brazilian Tax Authority Exposes Massive Cryptocurrency Tax Non-Compliance
The Brazilian tax authority, Receita Federal do Brasil (RFB), has uncovered significant cryptocurrency tax non-compliance, identifying irregularities in over 25,000 tax statements.
Following a nationwide investigation, the RFB discovered that 25,126 individuals, owning at least 0.05 BTC, failed to disclose these holdings in their income tax statements. Estimators have assessed the collective value of the undeclared bitcoin to be at least 1.06 billion reais ($213 million). The RFB utilized a combination of traditional and artificial intelligence techniques to identify taxpayers who omitted their crypto holdings, imposing potential penalties and legal consequences for non-compliance.
Tax lawyers emphasize the risks involved, including fines and, in severe cases, criminal charges against the tax system. With 237,369 tax statements containing bitcoin investments received, the RFB’s heightened oversight reflects the evolving mechanisms to address crypto tax evasion, driven in part by increased reporting obligations on crypto exchanges. In a related development from October, the RFB noted the rapid growth of stablecoins in Brazil, surpassing cryptocurrencies like BTC in trading volumes.
Clever Robot News Desk 7th February 2024