Her Majesty’s Revenue and Customs, the tax authority of the U.K., will extend its efforts to snare cryptocurrency tax evaders in an effort to uncover what it regards as hidden wealth, says United Kingdom accountancy group UHY Hacker Young.
As per the group, the “statement of assets” form that’s utilized in evasion investigations will now embody a new section focused specifically on crypto assets, like Bitcoin [BTC], Ethereum [ETH] as well as others.
Along with explicit demands for information on crypto holdings, the form will also reportedly include sections dedicated to other systems of exchange, along with the black market peso employed by Mexican and Colombian cartels, alongside similar unsanctioned currencies utilized in Africa, India as well as China.
“HMRC suspects that an increasing amount of hidden wealth is slipping via its fingers as of the increase of crypto assets and other unsanctioned money transfer systems. This demand for information is a crucial step in HMRC’s fightback against that,” explained UHY Hacker Young director David Jones.
“A defense of ignorance of the law within this booming sector will not wash with the taxman,” Jones concluded.
The HMRC’s demand for information on cryptocurrency holdings might not necessarily be met, added Jones. However, should someone fail to declare cryptocurrency holdings during an investigation and authorities later uncover a cryptocurrency wallet belonging to them, they might now face additional criminal charges.
“While criminals can still prefer to not declare these assets, doing so gives HMRC another opportunity to bring criminal charges against them if their forensic work finds a hidden BTC wallet,” Jones added.