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[Blockchain Today Reporter Park Yohan] UHI Hacker Young, a British accounting firm, said, “The British tax authorities, Her Majesty’s Tax and Customs (HMRC), are trying to crack down on cryptocurrency tax evaders to uncover what is considered hidden property. He said it would strengthen it further.
According to the group, the’asset statement’ form used in tax evasion investigations includes parts that focus on the cryptocurrency space, such as Bitcoin (BTC) and Ethereum (ETH).
While explicitly requesting information on cryptocurrency holdings, the form is also reported to include a dedicated portion of the trading system, including black market pesos used by Mexican and Colombian cartels, and similar unsanctioned currencies used in Africa, India and China.
“HMRC suspects that an increasing number of cryptocurrencies and other unauthorized trading systems are escaping more and more hidden property,” said David Jones, UHY Hacker Young’s director. This demand for information is an important step in the HMRC’s struggle,” he added, adding that “a system of defense that is ignorant of the law in a booming field will no longer be able to avoid the tax authorities.”
Jones says HMRC’s need for information on cryptocurrency holdings may not necessarily be met. However, if someone fails to report holding cryptocurrency during the investigation and later discovers a cryptocurrency wallet owned by the institution, additional criminal penalties are now possible.
“Criminals may still not report these assets,” Jones explained, “but in that case, HMRC has another factor in applying criminal charges when it discovers a hidden bitcoin wallet by forensic work.”