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Luno assures crypto traders about Sars disclosures
Luno crypto traders Sars disclosures: The South African Revenue Service (SARS) is conducting a tax risk assessment exercise of South African residents engaged in crypto assets.
However, Luno, a cryptocurrency exchange platform, has informed crypto-asset traders not to be fearful of an audit by the South African Revenue Service.
The platform went on to encourage them to be transparent with the receiver of revenue.
Luno Crypto Traders Sars Disclosures
This development is in response to crypto traders receiving notices from the Sars that their tax affairs are being reviewed based on information received from “various crypto asset exchanges”.
The Sars had also warned that traders’ failure to provide any information requested could be deemed a criminal offense under the Tax Administration Act.
Thomas Lobban, legal manager for cross-border taxation at Tax Consulting SA also said, “Some taxpayers have received audit letters requesting they provide reasons for their cryptocurrency investments. Also, provide letters from trading platforms confirming the investments.”
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Luno Assures Traders On Confidentiality
Luno assures users it would not share their information with Sars as it is confidential.
Marius Reitz, Luno’s general manager for Africa, told Business Insider, “Luno does not share customer information with SARS on a routine or ongoing basis.”
However, the CEO of the company highlighted that if Sars asks for specific data in the process of an investigation, then the platform is obliged to hand that information over.
The taxpayers must inform themselves and determine their liability to Sars, even if that means using the services of a tax consultant.
Conclusion
Note that SARS doesn’t view cryptocurrency as a currency. If you made money from your cryptocurrency investment, it can either be taxed as income or attract capital gains tax.
This depends on whether you are an active trader in cryptocurrencies, or are investing for the long run.
