South African Revenue Service is reviewing tax returns of cryptocurrency traders for possible historical irregularities

Odaily News South African cryptocurrency traders have begun receiving notices from the South African Revenue Service (SARS) that their tax matters are under review. The tax service is collecting information from various crypto asset exchanges to assess compliance. Traders who fail to provide the requested information may face criminal charges under the Tax Administration Act. SARS may also investigate historical failures to declare cryptocurrency ownership, and according to Tax Consulting SA, the review may involve past violations by cryptocurrency traders. However, SARS has not provided clear guidance on whether crypto trading is considered capital gains or income. Therefore, it remains challenging to accurately record gains and losses on local and foreign crypto exchanges. (Bitcoin.com)