Brazilian Tax: 25,000 Traders Ignore Reporting on Bitcoin Investments
The Brazilian Tax Service (RFB) reported violations in more than 25,000 tax returns, which did not include bitcoin assets. Officials threatened crypto investors with punishment for hiding income.
RFB used artificial intelligence to conduct the investigation. 25,126 people, who owned at least 0.05 BTC each, did not include this cryptocurrency in their tax returns, the AI showed. According to the regulator's estimates, cryptocurrencies worth at least 1.06 billion reais (about $213 million) remained undeclared.
In total, the tax authority received 237,369 tax reports from residents of Brazil with registered investments in bitcoin. Plus 181 applications submitted by citizens of the country from abroad. At the end of last year, Parliament began considering a bill on taxation of foreign crypto assets.
RFB warned that for refusing to declare cryptocurrencies, Brazilian citizens can go to prison for a period of six months to two years and receive a large fine. Leonardo Roesler, a tax lawyer and partner at RMS Advogados, called the situation dangerous. According to him, the incorrect declaration of cryptocurrencies can be considered a crime against the tax system.
