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19/06/24
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Malaysian Authorities Go After Cryptocurrency Trading Tax Evaders
Malaysian authorities have reportedly taken further action to ensure that firms do not evade taxes on cryptocurrency trading. According to the Malaysian Reserve’s report, the Inland Revenue Board (IRB) carried out a special operation called “Ops Token” which involved raiding ten locations across the Klang Valley.
Thirty-eight personnel involved in the operation were from the Royal Malaysia Police and CyberSecurity Malaysia (CSM). Their targets included firms that failed to properly report their cryptocurrency trading activities to the federal agency.
This action is based on the desire of the local government to ensure that tax revenue leakage is reduced, and the country’s tax administration is improved. It was revealed that a number of corporate entities and limited liability partnerships were established to trade cryptocurrencies.
It is believed that they are not willing to declare their taxes. “Through the operation, cryptocurrency trading data stored in mobile devices and computers were found, and we successfully identified the value of digital assets being traded, which caused a very significant leakage of tax revenue,” said the IRB.
According to the IRB, they will analyze the data obtained during the operation towards determining the value of cryptocurrency assets traded by the entities as well as the profits generated. This will allow the identification of the level of tax leakage.
In the words of IRB CEO Datuk Abu Tariq Jamaluddin, those who engage in cryptocurrency trading across the country are required to comply with income tax rules. Jamaluddin advised cryptocurrency traders to ensure proper declaration of their cryptocurrency taxes to nearby IRB offices without delay to avoid experiencing the IRB’s compliance action.
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