If you think you can evade paying tax by using Bitcoin, think again; the “J5”, the tax agencies of Australia, Canada, England, the US and the Netherlands are working together, and are committed to the identification and prosecution of cyber criminals.
The tax authorities of five major world nations announced on Wednesday (July 4) that they have created a joint alliance called the “Joint Chiefs of Global Tax Enforcement”, known collectively as “J5”.
J5 – The “A-Team” Of International Tax Evasion
The J5 is made up of agencies from five different countries: the Australian Criminal Intelligence Commission (ACIC) and the Australian Tax Office (ATO), the Canadian Tax Agency (CRA), the Inlichtingen- Tax Service in Opsporingsdienst (FIOD) of Holland, the British Customs and Internal Revenue Service (HMRC) and the Criminal Investigation Service of the Internal Revenue Service of the United States (IRS).
Like an A-Team of top tax officials, J5 is committed to the fight against transnational fiscal crime “through greater collaboration in the application of the law”, which means that they work together to collect information, share intelligence and carry out joint operations.
Bitcoin Is Property
The IRS are determined that Bitcoin is treated as property, with losses or gains treated as losses or capital gains for tax purposes. The IRS revealed new data regarding its investigation into Bitcoin-related tax evasion.
The IRS placed this statement on their website:
“We are convinced that offshore structures and financial instruments, where used to commit tax crime and money laundering, are detrimental to the economic, fiscal, and social interests of our countries.”
“We will work together to investigate those who enable transnational tax crime and money laundering and those who benefit from it. We will also collaborate internationally to reduce the growing threat to tax administrations posed by cryptocurrencies and cybercrime and to make the most of data and technology.”
The members of J5 met up for the first time last week. Immediately, top of their agenda was the development of a new plan of action to identify and prosecute cybercriminals and money launderers. J5 said that by the end of 2018, new updates will be announced.