Cryptocurrency cross-border transactions leave a massive scope for frauds and crimes. To defy such crimes and apprehend criminals, regulatory bodies in four countries have come together to form a coalition that will internationally fight with such fraudsters.
In the past few years, virtual currency trading has become a significant phenomenon with the trading volume increasing considerably. As a result, cryptocurrency taxes have also become a cause of concern for many nations around the world.
Six agencies from five countries to join coalition
The United States Internal Revenue Service (IRS) has decided to take the virtual currency tax compliance to the global level. The tax authorities from four countries that are joining the U.S. in the coalition include Australia, Netherlands, Canada, and the UK. The alliance named Joint Chiefs of Global Tax Enforcement (J5) will include six agencies from five countries. The coalition has been formed in response to the call made by the Organization for Economic Co-operation and Development (OECD) for reducing tax crimes.
These include the Australian Taxation Office (ATO), the Australian Criminal Intelligence Commission (ACIC), Netherland’s Fiscale Inlichtingen-en Opsoringsdienst (FIOD), the Canada Revenue Agency (CRA), the Internal Revenue Service Criminal Investigation (IRS-CI), and United Kingdom’s HM Revenue & Customs (HMRC). The coalition will fight the tax crime as well as money laundering activities with virtual currency and other financial assets.
Agencies to curb fraud practices
These agencies will carry out joint investigations and will try to empower the operations at the international level for combating criminal activities. According to the chief of IRS-CI, Don Fort, they cannot continue to work in the same manner as in the past. He said that the organized tax cheats and criminals will continue to manipulate and exploit the system for personal gains. Thus, making use of the vulnerabilities.
Fort said, “The J5 aims to break down those walls, build upon individual best practices, and become an operational group that is forward-thinking and can pressurize the global criminal community in ways we could not achieve on our own.” The purpose of this coalition is to curb transnational tax crimes with cryptocurrency-related tax crimes as major focus.