• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
Brazil IRS creates special code for dishonest crypto taxpayers
Nexo

Brazil IRS Creates Penalty Code For Dishonest Crypto Taxpayers

Christine Vasileva by Christine Vasileva
3 years ago
in Bitcoin, News, News teaser
0
Advertisement

The IRS in Brazil has turned the spotlight on crypto deals and transfers, creating a special penalty code to fine for misreporting.


Brazil Requires Monthly Filings for Crypto Activity

Failing to file a monthly report of crypto asset movements triggers “Revenue code 5720 – Default for Default / Incorrect / Delay in Reporting on Transactions Performed with Crypto”, reported community portal OBN.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Brazil introduced crypto regulation this August, and the IRS claims it has received reports for $14 billion in transactions in the past few months. It is uncertain how that figure was reached, and whether it is based on transfers alone, or involves trading.

The IRS requirement, however, may only involve transactions related to trading. Moving actual coins is anonymous in most cases. When a coin is traded for fiat, however, a taxable event must be accounted. For instance, accounting for November trades must happen by the end of December.

Based on LocalBitcoins volumes, interest in Brazil is relatively stable. Local exchanges remain highly active, though the Brazilian real makes up about 0.03% of total BTC trading globally.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

The taxation approach in Brazil resembles that for the US IRS. The taxman also observes certain accounts, and some of the exchanges and brokerages are obligatory reporters. Simply holding BTC, however, does not generate a taxable event, despite the price fluctuations.

But revenue services around the world are also learning about the transparency of the Bitcoin network, and the potential to trace transactions directly. The technique, reserved for criminal investigations, is also known to the US IRS.

US IRS Extends Blockchain Exploration to Crack Down on Crime

One of the biggest crackdowns on BTC usage for 2019 happened in relation to the website Welcome to Video, a darknet network offering underage content. With the help of Chainalysis, the IRS and law enforcement managed to link BTC addresses to accounts and real-world identities.

“By analyzing the blockchain and de-anonymizing bitcoin transactions, IRS-CI special agents were able to identify hundreds of predators around the world – even though those users thought that they could remain anonymous,” the IRS reported.

BTC ownership and trading is regulated in vastly different ways. For most countries, recognizing a gain on selling the assets would be a reportable event. Rules differ on the time period of holding the asset, as US-based traders face differentiated taxes for short-term and long-term BTC investment.

The latest IRS annual report, details that the service has achieved a 91% conviction rate for crypto tax crimes in 2019 alone. This figure demonstrates the growing efforts of the tax authorities to clamp down on crypto tax dodgers.

Right now, Bitcoin has added more than 90% to its price since the start of 2019, but may also incur losses depending on the time of purchase and sale.

What do you think about Brazil’s approach to BTC transaction taxation? Share your thoughts in the comments section below!


Images via Shutterstock

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Christine Vasileva

Christine Vasileva

Christine Vasileva is a financial news and business writer, tracking the latest developments in fintech and the effect of blockchain and crypto-assets on global business and finance.

Related Posts

short bitcoin

Inverse Bitcoin ETF Sees 300% Increase In Short Interest

3 hours ago
Bitcoin

Bitcoin Bear Market Sends On-Chain Metrics Into Sideways Trend

7 hours ago
bitcoin addresses

Decline In Bitcoin Active Addresses Suggests Market Is Purging Paperhands

9 hours ago
Crypto

Crypto Lender Voyager Digital Goes Bankrupt After Three Arrows Collapse

11 hours ago
South African Firm Raises $150 Million To Introduce Crypto Water Tokens Dubbed H2ON

South African Firm Raises $150 Million To Introduce Crypto Water Tokens Dubbed H2ON

18 hours ago
Jordan Belfort

Jordan Belfort, The ‘Wolf Of Wall Street,’ Advises: Buy Bitcoin Today And Make Money

19 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.