Her Majesty’s Income and Customs, the UK tax authority, will step up its efforts to trap tax evaders in cryptocurrency to find out what it sees as hidden wealthsays the British accounting group UHY Hacker Young.
According to the group, The asset disclosure form used in tax evasion investigations will now have a section specifically dedicated to cryptocurrencies, like Bitcoin (BTC), Ether (ETH) and others.
In addition to explicit requirements for information on cryptocurrency holdings, the form also contains sections dedicated to other exchange systems. including the black market peso used by Mexican and Colombian cartels and similar unauthorized currencies used in Africa, India and China.
“HMRC suspects that with the rise of cryptocurrencies and other unauthorized money transfer systems, an increasing amount of hidden wealth is slipping through their fingers. This information request is an important step in HMRC’s fight against it.” ?explained the director of UHY Hacker Young, David Jones.
“Defending ignorance of the law in this booming sector will no longer serve the treasury.”Jones added.
The HMRC’s request for information about crypto holdings does not have to be met, said Jones. However, If someone fails to reveal their cryptocurrency holdings during an investigation and authorities later discover a cryptocurrency wallet that they own, they may face additional criminal charges.
“While criminals can still choose not to declare these assets, this gives HMRC another option to file criminal charges against them if their forensic work finds a hidden Bitcoin wallet.”Jones explained.