Japan is targeting crypto investors who filed tax reports with misrepresented profits

The National Tax Agency (NTA) of Japan is targeting crypto investors who have misfiled tax reports on returns generated from crypto-related income, reported The Asahi Shimbun. 50 individuals and 30 companies in Japan are said to have filed tax reports for crypto-related income for an estimated total of around $93 million. However, the NTA said that individuals and businesses have not disclosed all of the income generated from cryptocurrency investment with the intent of lowering taxes.

According to The Asahi Shimbun, the current tax rate on crypto-related income can reach 55 percent, substantially higher than the 20 percent on stock sales gains, which may have contributed to the rise in investors misrepresenting crypto-related income.

"Gains from cryptocurrency transactions are considered miscellaneous income. If salaried employees earn more than 200,000 yen in such income over the course of a year, they are required to report it. However, the high rate at which miscellaneous income is taxed--at up to 55 percent--has apparently led to an increase in efforts to conceal it," reported Asahi.