US Committee to Debate Crypto Tax Reform, Indians ‘Face Questionnaire’
Politicians and tax regulators around the world are continuing to struggle with the thorny issue of cryptocurrency taxation – with a congressional financial committee set to debate a “tax fix” act on crypto tax in the United States and Indian authorities reportedly grilling crypto holders with exhaustive questionnaires.
The House of Representatives confirmed that its Committee on Ways and Means will address the Virtual Value Tax Fix Act of 2019, a measure put forward by North Carolina’s Republican congressman Ted Budd.
Budd’s bill proposes to amend the Internal Revenue Code of 1986 to “exclude gain or loss on like-kind exchanges of cryptocurrency,” and would effectively end double taxation on cryptocurrency transactions.
Budd has championed crypto tax reform in the past, and in June told the same committee that cryptocurrency should be granted the same de minimis tax exemptions as foreign currencies – meaning that smaller transactions can be waived off, and do not need to be declared to tax authorities.
The Tax Fix Act would stipulate, per its terms as stated on Congress’ website, that “the exchange of virtual currency for virtual currency of like kind shall be treated in the same manner as the exchange of real property for real property of like kind.”
Meanwhile, in India, Twitter user IndiaBits claims that cryptocurrency holders are being quizzed by tax authorities in the country. The account holder shared pictures of a questionnaire apparently sent from India’s Ministry of Finance in July this year asking about crypto earnings dating back as far as 2016.
The questionnaire comprises a total of 26 items, and asks recipients to tell income tax officials about which exchanges they have accounts with, explain the source of their income, talk about possible investments in mining companies and even provide credit card transaction data. It also states that mistakes or omissions could be punishable by fines of USD 140. Another Twitter user claimed, meanwhile, that the government sent similar questionnaires out in 2018.