Israeli Tax Authorities Orders Citizens to Disclose Their Crypto Holdings


December 28, 2020 11:24 am

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The Israeli Tax Authorities (ITA) has notified several Israelis that hold cryptocurrencies to fully reveal their holdings and asked them to be taxed. The authorities also sent inquiries to cryptocurrency exchanges operating in Israel and those based abroad. 

The orders and inquiries sent by the revenue collector were being preceded by Israeli media speculation that tax assessors across the country were exerting “pressure on the digital currency market.” As Globes’ reporting, the ITA wants to “obtain information about Israelis trading in these currencies.” Before initiating the move, the Israeli revenue collector had been receiving “data about the Europe-based funds and accounts held by Israelis.”

The report stated that Israel receives this data in line with the “EU Common Reporting Standards (CRS) regulations for the automatic exchange of financial account information.” Similarly, the Israeli tax collector is reported to have a different arrangement with its counterpart in the United States. 

The report describes:

“Additional information comes through the FATCA agreement, which conveys the US Internal Revenue Service (IRS) data to Israel.”

As of December 2018, The Israeli Tax Authorities (ITA) announced strict practices to identify the people who are hiding their cryptocurrency investments as a way to save money by not paying taxes. These practices include sending notices to suspected individuals for reporting their crypto earnings.

According to Calcalist, some common signs of a cryptocurrency tax evader include frequent overseas travel without documentation or the evidence of managing trip expenses. These people are usually owners of multiple real estate properties.

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