After countries such as South Korea and India, it is Belgium’s turn to impose taxes on cryptocurrency investors within its jurisdiction.
The Special Tax Inspectorate (STI) of Belgium is reportedly looking into multiple cases of cryptocurrency trading to go through special cases of tax evasion.
As per local news sources, the STI started to look into four cases of such nature, but closed one of them due to non-relevancy.
However, it is still investigating the remaining three cases and will reportedly have some updates on them soon. It was also reported that the STI started going through these cases after a tip off from unknown foreign sources.
The Belgian authorities have been keen on collecting taxes from those who trade in cryptocurrencies. As of December 2017, any holders of cryptocurrencies are liable to declare any gains made from their held cryptocurrencies in the “other income” section of their tax form, on which a 33 percent tax is to be levied.
These taxes of 33 percent are for individual traders. When it comes to a business entity, the taxes can go as high as 50 percent.
The arguably high amount of taxes has caused various traders to start hiding their transactions, and since some of them are performed through international modes, it has been difficult for the Belgian authorities to track them effectively.
Since the very purpose of the STI is to combat “serious and organized tax evasion”, the government hopes to set an example with the cases under investigation. Updates are yet to be released on the details, which will likely be done once the investigation has been completed.