ChainCatcher reported that according to News.bitcoin, South African cryptocurrency traders have begun to receive notices from the South African Revenue Service (SARS) indicating that their tax affairs are under review.
The tax authorities are collecting information from various crypto asset exchanges to assess compliance. Traders who fail to provide the requested information may face criminal charges under the Tax Administration Act. The South African Revenue Service may also investigate historical failures to declare cryptocurrency ownership.
The South African Revenue Service has not yet provided clear guidance on whether cryptocurrency transactions are considered capital gains or income. Therefore, it remains challenging to accurately record gains and losses on local and foreign cryptocurrency exchanges.
