Five tax enforcement agencies from five countries have formed a united alliance, the Joint Chiefs of Global Tax Enforcement, “the J5” to fight the transnational tax. The five nations will collaborate in collecting information, sharing intelligence, and carrying out the operations together in an effort to eradicate the vice.
J5 On The Hunt For Those Who Use Bitcoins To Avoid Taxes
Tax enforcement agencies from five different countries have come together to form what will be known as the Joint Chiefs of Global Tax Enforcement, to be simply called “the J5.” The five agencies that form the group are the Australian Criminal Intelligence Commission (ACIC) and Australian Taxation Office (ATO), the Canada Revenue Agency (CRA), the Dutch Fiscal Inlichtingen- en Opsporingsdienst (FIOD), the British HM Revenue and Customs (HMRC), and the American Internal Revenue Service Criminal Investigation (IRS-CI).
IRS stated that it is convinced that there are individuals and companies that have been using offshore structures and financial instruments to evade tax and engage in other illegal activities such as money laundering. The agency added that these activities have adverse effects on the economy and society at large. IRS also said that they are determined to identify those who facilitate these illegal activities and the main beneficiaries. The statement added that the five agencies would collaborate to address the growing threat that Cryptocurrencies and cybercrime present to these agencies, especially in the fight against tax evasion and money laundering.
The First Meeting
The group held its first meeting last week. The meeting focussed on developing new strategies to identify the cybercriminals who engage in this activity and how to pursue them. The group also developed a plan to uncover all those who facilitate transnational tax crime. The other players in cybercrime that the group worked on include those who facilitate and assist money laundering. J5 promised to provide more updates about their activities in late 2018.
The Popularity Of Cryptocurrencies Among Cybercriminals
Cryptocurrencies such as Bitcoin, Litecoin, and Ethereum among others have gained popularity as they have been hailed for facilitating easy and fast financial transactions. The coins are decentralized and enable users to transact anonymously. Although the virtual currencies were not developed with the intention of facilitating illegal activities, they have become especially popular among cybercriminals. Government agencies around the world are finding it challenging to control illegal activities such as money laundering conducted using these currencies.
Bitcoin To Be Treated As Property
Governments have been finding it challenging to establish how to treat Cryptocurrencies when it comes to taxation. IRS has said that it will start treating Bitcoin as a property. The losses or gains that reported with the virtual currency will be treated as a capital loss or capital gain to facilitate taxation.
IRS has been carrying out investigations on the use of Bitcoin to evade taxation. The agency has established that only a few of the Cryptocurrency owners are indicating profits or losses when filing their annual returns. This is despite many people making huge profits in the sector and becoming millionaires or even billionaires overnight.