- International tax enforcement heads are found targeting cryptocurrency
- J5, a group of five international tax enforcement chiefs are explicitly focusing on the cryptocurrency and financial technology industry
- The group is ex[pected to bring more international actions against the crypto and fintech industry
Cryptocurrency performance is attracting more mainstream attention towards the industry. Five international tax enforcement chiefs are found to be targeting crypto tokens. Earlier this week, the five enforcements have been meeting to discuss their joint initiatives to combat tax evasion. The group includes the Internal Revenue Service’s Criminal Investigation unit.
In recent years crypto tokens like Bitcoin and Ethereum have become a priority of the IRS and other international tax authorities. However, the authorities are only seeking to uncover the information on the quickly growing assets.
Cryptocurrency as a focused challenge for tax enforcements
The group of five tax enforcement chiefs is known as the Joint Chiefs of Global Tax Enforcement (J5). The members represent the United States, the United Kingdom, Canada, Australia, and the Netherlands. The members meet once a year to discuss and together on common tax evasion issues and challenges.
Last year among the challenges of J5, cryptocurrency was also involved. However, this year the J5 has focussed explicitly on cryptos and fintech firms. According to Jim Lee, the chief of the IRS’s Criminal Investigation Division, the value of such challenges cannot be overstated.
J5 will bring more international actions against crypto
The J5 members are seeing tax crimes getting more sophisticated. According to the members, many in the world think that global tax authorities are always two steps behind tax cheats. However, now with J5, which came as an international tax crime fighter, will create a way to break the barriers between nations to work closely to share resources. Indeed, the relationship among international tax authorities is stronger than ever. Seeing the relation, it is expected that more international actions will be taken in the coming years against offshore operators and cryptocurrency schemes. Moreover, the particular focus of J5 is eyeing the fintech industry.
COVID-19 has disrupted the tax evasion schemes
According to Eric Ferron, the director-general of the Criminal Investigations Directorate at Canada Revenue Agency, tax evasion methods are getting more complicated after the COVID-19 pandemic. Many employees in the world are working remotely who didn’t always have access to computers. The aforementioned fact is one of the significant reasons that cybercrimes are increasing. For the reasons amid the pandemic, tax authorities are observed to be a step or two behind tax crimes and cheating.
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