The Colombian tax office, DIAN, has reminded taxpayers that beginning this year, they must begin reporting cryptocurrency in their statements. Lisandro Junco, director of the DIAN, warned cryptocurrency users that this kind of asset is taxed the same as any other asset owned by people. Colombia has already collected $1 billion in taxes connected to the digital economy.
Beginning this year, the Colombian tax office reminded taxpayers of their need to declare Bitcoin holdings on their tax returns. The agency notified the public during a consultation conducted by local media that it is authorized to conduct verifications on data received from taxpayers to guarantee the implementation of the country’s tax laws.
Lisandro Junco, director of the tax authority, spoke on crypto-assets and their tax position in Colombia. He stated: Taxes must be paid regardless of whether it is a component of the digital economy.
Additionally, the group said that any items that meet the legal definition of assets, including bonds, stocks, and cryptocurrencies, should be disclosed. However, cryptocurrency users are not the only ones who should be aware of crypto taxes. Cryptocurrency miners must also publish their mining figures, since the agency, according to accounting firm BDO Colombia, has classed mining revenues as income.
Application and Sanctions
While the majority of tax authorities continue to rely on users to record cryptocurrency transactions and ownership, the Colombian tax authority has a number of sources that may assist it in detecting bitcoin tax evasion. Junco noted that the DIAN is involved in a variety of information exchanges with other nations, which include the names of residents who should be reporting cryptocurrency-related taxes. As Junco put it:
And what we do is compare the major element to the tax return, determining whether there is an opportunity for error, evasion, or whether the information is current.
In Colombia, the penalties for failing to declare cryptocurrency taxes are twice the amount of cash not included in the tax statement. According to Junco, Colombia has collected $1 billion in taxes related to the digital economy over the previous three years. He asked people to register their cryptocurrency holdings.
The authority earlier announced a number of measures aimed at tightening control over bitcoin use in order to uncover tax evasion more quickly.
Also Read: According to the IMF, the Russia-Ukraine War Will Boost Crypto Asset Adoption
