UK Cryptocurrency Tax Evaders are in UK Revenue Authority’s Radar
Although the United Kingdom regulatory authorities have always opposed the idea of cryptocurrencies, yet the industry has gained enormous recognition in the region. With every passing day, the number of UK investors in the crypto-verse continues to surge.
On many occasions, the regulators have intimated local investors about the risks involved when investing in cryptocurrencies. Still, the number of investors in the cryptocurrency industry from the UK’s end is at an all-time high.
Even the regulatory authorities have realized that it would be a bad idea for the authority to revoke cryptocurrencies from the public. At present, many investors from the UK are making a living through the use of cryptocurrencies and investments.
Therefore, the authorities have decided that instead of ceasing cryptocurrencies, they must focus on generating revenues from them.
At present, the investors dealing in cryptocurrencies are expected to pay taxes for the profits they make against crypto investments. Therefore, any individual or company evading taxes on cryptocurrency revenues is breaking the law.
Therefore, Her Majesty’s Revenue and Customs, or commonly known as HMRC has started expediting its efforts against cryptocurrency tax evaders. The HMRC is now becoming more observant and active around the cryptocurrency sector. They are aiming to identify and penalize the ones that have been involved in hiding their assets and wealth from the government.
A major accountancy firm in the UK known as UHY Hacker Young has revealed the above information to the entire cryptocurrency sector.
The firm has revealed that the HMRC has now added a specific field for cryptocurrencies in the form that is used to conduct investigations on tax evaders. The form will require the filer to choose Bitcoin (BTC), Ethereum (ETH), or mention the name of other cryptocurrencies in the form.
The form will also be extended to acquire information on holdings other than cryptocurrencies. It will also have sections added for the peso that is used by the Colombian and Mexican cartels on the black markets. The regulator has also added other currencies to the form such as Chinese yuan, Indian rupee, and African currencies used for the same purposes.
According to HMRC, a huge amount of revenue has been slipping past UK’s finance sector on a daily basis. It has happening because of the cryptocurrencies and other digital assets that are letting tax evaders do it with complete freedom.
The regulator stated that it has always been concerned about the lack of regulatory adherence practiced by cryptocurrency firms. The cryptocurrency firms are the major reason why such investors are able to get away with their foul acts.
However, HMRC is now determined to keep a close eye on such evaders and bring them to justice. To achieve this goal, the regulator will introduce stricter policies and regulations in the coming days.