South African tax authorities step up audit of cryptocurrencies for undeclared assets Cryptocurrency exchanges ordered to share data upon request.The South African Revenue Service (SARS) has issued a warning to crypto holders and traders to declare their crypto assets on their tax returns.
More than 5.8 million South Africans reportedly hold digital currencies, and SARS is tightening compliance in this area.
To ensure transparency, SARS works with the Financial Sector Conduct Authority to obtain information from local exchanges.
This follows reports that SARS has begun issuing notices to crypto traders demanding information about digital assets, including past records that could lead to tax liability on previously undeclared assets. It is.
Licensed exchanges such as Luno and VALR say they do not share customer data by default, but will comply with legal requirements if SARS requests the information for specific investigations.
SARS Commissioner Edward Kieswetter says tax evaders unfairly influence honest taxpayers and limit the government’s ability to fund critical social programs, calling for improved compliance. He emphasized the intention of the government agency.
He warned that “SARS will pursue everything without fear, favor or prejudice.”
However, Wiehann Olivier, partner and head of fintech and digital assets at Forvis Mazars, believes SARS’ hardline approach may not be the best idea.
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He said authorities could encourage compliance more effectively through clear guidance because “you catch more flies with honey than with vinegar.”
