Ministry of Finance to simplify tax calculation through dedicated app development / What does legislator Takeshi Fujimaki say about "tax reform for virtual currencies"?
The Cabinet Office's Council on Tax System examines on October 29 theSecond Meeting of the Expert Conference on Taxation Environment Improvementwas held.
In the first meeting of the Expert Conference on Taxation Environment Improvement, under the title “Responses to recent changes in the tax administration environment,” materials were published and the following points were raised.
Including those arising from new transactions such as cryptocurrencies, some taxpayers do not file correctly, and to ensure fairness, it is necessary to advance discussions on a framework to grasp information about those who do not file properly, while also drawing on foreign examples.
Quotation:First Meeting of the Expert Meeting on Taxation Environment Improvement (October 24, 2018) – List of Materials
In 2017, the Revised Payment Services Act established cryptocurrency as an official “currency,” giving birth to a new asset class.
Therefore, the “Taxation and Tax Rate of Cryptocurrencies” framework is still under development and cannot be said to be well established.
Ministry of Finance to Simplify Crypto Tax via Dedicated App
In the second meeting of the Expert Conference on Taxation Environment Improvement, as a plan to slightly simplify the vast and complex cryptocurrency taxation tasks for taxpayers, a proposal was presented to “import transaction data into a dedicated app and automatically calculate profits from cryptocurrency trades.”
The following are the illustrative materials.
Source:Cabinet Office Materials
Further materials can be checked from below.
>>>Second Meeting of the Expert Meeting on Taxation Environment Improvement (October 29, 2018) – List of Materials
Strengthening Measures Against Cryptocurrency Tax Evasion
As key potential measures to strengthen defenses against cryptocurrency tax evasion, three points are particularly noteworthy.
- Information inquiry system
- Situation where cryptocurrency exchanges withhold tax
- Introduce a new “statutory report” for cryptocurrency trades
The above items are especially important, so let’s examine them one by one.
Information Inquiry System
The information introduction system iswhere the exchange hosting the trades can request basic information about a person who is suspected of underreportingfrom the individuals’ basic informationto be suppliedby the exchange.
In Japan this is gradually expanding, and in Western countries it is already implemented as one of the tax evasion countermeasures.
Proposal for Cryptocurrency Exchanges to Withhold Tax
The proposal for cryptocurrency exchanges to withhold tax is a system already introduced in the stock market’s “specific account.”
Not the user,the exchange pays taxes collectivelythereby.......................Continue here ⇩
>>>See on the official Cryptocurrency Trivia site
