Russian tax chief says cryptocurrency will erode the tax base

The head of FNS, Daniil Egorov, said that the Russian Federal Tax Service (FNS) is actively monitoring the cryptocurrency market to prevent tax evasion.

Cryptocurrency may “severely erode” Russia’s tax base, Yegorov debate In an interview with the local publication RBC on Monday.

However, the official stated that cryptocurrency transactions are still traceable and should be reported, adding that FNS is ready to deploy an automatic tracking system to handle large amounts of data.

“When you enter the digital space, you will still leave a trace somewhere. It is only a matter of time to determine this clue,” Yegorov declared.

The official also pointed out that FNS is now thinking of ways to deal with crypto tax evasion because the authorities want to curb such activities, not just identify it. Egorov added: “We want to find a solution to solve the problem as a phenomenon, not just identify the behavior of specific participants.”

Russian State Duma Approved a bill on cryptocurrency taxation In the first reading in February 2021, residents are required to report the total amount of crypto transactions Over 7,800 USD per year. To advance the second reading, the legislators Decided A responsible committee was appointed in mid-October, the State Duma Budget and Taxation Committee.

According to Sergei Khitrov, founder of the Russian cryptocurrency event Blockchain Life, Russian crypto companies May generate up to 4 billion U.S. dollars in revenue Annual tax value. According to him, so far, the local encryption community has proven “total failure” in understanding how to pay taxes on encryption.

related: The House of Representatives passed a $1T infrastructure bill and crypto tax for Biden’s approval

News comes U.S. lawmakers fight back against change Tax reporting rules for crypto transactions exceeding $10,000 are included in the newly passed Infrastructure Act. The bill was initially approved by the Senate in August, Encountered a compromise offer Amendments to a panel of six senators, including support for Bitcoin (Bitcoin) Senator Cynthia Loomis