J5 member states: Intensify efforts to combat cross-border tax avoidance plans related to cryptocurrencies

J5 members include Australia, the United States, the United Kingdom, the Netherlands and Canada.

According to foreign media reports, Australian tax officials are investigating 12 cross-border high-end tax avoidance programs discovered by global data sharing by key countries concerned with the abuse of cryptocurrencies.

32428289378_8df9e7ab0e_c

Image source: visualhunt

After the meeting of the J5 group of tax authorities in Australia, the United States, the United Kingdom, the Netherlands and Canada, the Australian Taxation Office confirmed that tax officials in these five countries have increased their efforts to combat the use of cryptocurrencies. They confirmed the investigation of up to 50 leads, which are only part of a global survey.

The five countries established J5 a year ago because of growing concerns that tax avoidance, cybercrime and cryptocurrency abuse escalated as criminals took advantage of national tax laws.

Since the establishment of the organization, the data collected between the tax authorities of the five countries has been more than the total data of the past 10 years.

Will Day, deputy director of the Australian Taxation Office, said that J5 member countries are conducting 60 investigations and Australia is directly involved in 12 projects, at least one of which is aimed at “global financial institutions” and their intermediaries. These institutions are believed to enable taxpayers to hide asset and income details.

He continues to say that there is clear evidence that in Australia, someone is helping to avoid taxation or collaborating with others in overseas jurisdictions to engage in criminal activities. The Australian Taxation Office's cooperation with other members of J5 means that more information is now available to support data matching activities specifically for tax offenders. He said:

“The risk of criminals being captured is not as high as ever. In Australia, they usually act as intermediaries between tax evaders and offshore entities.”

A key investigative object is the cryptocurrency. The Dutch tax agency recently closed a cryptocurrency “Mixer” to analyze the information and share it with other members of J5. Encrypted hybrid services increase the anonymity of cryptocurrency holders. They use an algorithm to mix data that might identify the currency holder and other holders, making it extremely difficult to track the final ownership of the asset.

Day said that the link between cryptocurrency investment and money laundering is a particularly worrying issue, and criminals use these online currencies to evade detection. He also believes that tax evasion through cryptocurrencies "is not a criminal act without a victim." He said:

“We found that the use of cryptocurrencies is now unheard of. In Australia, there are absolutely legitimate cryptocurrency investments, but we also see people using cryptocurrencies to facilitate tax crimes.”

Information between J5 members is being shared in a “more organized” way, including through computer networks, enabling organizations to compare, analyze, and exchange data anonymously.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Derivatives track has become an industry consensus. Bitcoin will be up to 20,000 US dollars in the year?

2020 cryptocurrency market welcomes a good start: BTC rose more than 29% in January, and regained the 10,000 yuan mar...

Blockchain

Coinbase CEO: Almost every economic field is struggling, and Bitcoin is the currency people need at this moment

Editor's Note: This article has been deleted without changing the original intention of the author. Coinbase, a ...

Blockchain

99% of the transaction volume is fraudulent, what is left behind the false prosperity of the currency circle?

The amount of trading fraud has been ridiculous for the people of the coin circle, but all along, there are always bl...

Blockchain

The new pattern of staking: exchanges enter the market to explore the boundary, the pledge amount of service providers is not proportional to the income provided

Analyst | Carol Editor | Bi Tongtong | PANews At this time last year, Staking was all the rage, and many players &quo...

Blockchain

Interview with BitMax.io Cao Jing: Compliance, Localization and Traffic Integration, Exchange Status and Future

On October 19th, at the 1st anniversary of the BitMax.io exchange, Jingwei China Partner Harry, Sequoia Capital Partn...

Blockchain

FCoin's self-help campaign

The FCoin that stirred the entire exchange industry last year seems to be back after a long silence. Since February, ...