South African Cryptocurrency Traders Under Tax Review

According to Odaily, South African cryptocurrency traders have started receiving notifications from the South African Revenue Service (SARS) that their tax affairs are under review. The tax authority is gathering information from various cryptocurrency exchanges to assess compliance. Under the Tax Administration Act, traders who fail to provide the requested information could face criminal charges. SARS may also investigate instances where cryptocurrency ownership has not been declared in the past. According to Tax Consulting SA, this review could involve past transgressions by cryptocurrency traders. However, SARS has not provided clear guidance on whether cryptocurrency transactions are considered capital gains or income. Therefore, accurately recording profits and losses from domestic and foreign cryptocurrency exchanges remains a challenge.