The UK government is considering giving Her Majesty’s Department of Revenue and Customs powers to confiscate digital assets from the custodian portfolios of companies that evade tax.
The government is considering this proposal in light of the new regulations for the normalization of payments for digital assets.
The UK tax authority expects $12 million in individual crypto taxes
Parliament is considering revamping the Direct Debt Recovery (DRD) Act, which currently allows the Human Resources Authority to confiscate funds from the bank accounts of tax evaders. The revision, proposed in a new advisory paper, would allow the HR board to access custodial wallets and PayPal accounts.
Although cryptocurrency exchanges cannot stop user flows, they can prevent users from cashing out funds for fiat or transferring them to another wallet.
Stakeholders felt that HMRC’s responsible use of the existing DRD indicated that it would not override the privileges of a digital wallet.
The Government will consult the Portfolio Operators to develop the proposal and understand the implementation challenges.
HMRC raised 787 billion pounds ($994 billion) in the last tax season.
The tax authority said cryptocurrencies will be added to individual returns, adding about $12 million in capital gains collection.
Law enforcement like the London Metropolitan Police really can Reservation captured grabs Cryptography linked to criminal activity. Last year, the agency opened a drug-smuggling ring by tracing the flows of crypto-money between the exporter and the importer. In 2021, they seized nearly $400 million in illicit cryptocurrency.
The IRS uses artificial intelligence to track cryptocurrency tax evasion
The US Internal Revenue Service (IRS) recently deployed agents to assist international law enforcement in cracking down on tax and other financial crimes involving cryptocurrency. They will act as international agents advising case agents on the feasibility of obtaining certain evidence. The agents will also provide advice on local legal and cultural considerations.
The IRS analyzes cryptocurrency tax disclosures and investigates white-collar crime through tools developed by AnChain.ai. The government will give the agency $80 billion for enforcement actions, including cracking down on cryptocurrency tax evasion. New US tax laws will track the transactions of clients of crypto brokers from 2024.
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