The tax revenue authority of the United Kingdom (UK) has vowed to go after crypto tax evaders to uncover what is termed as hidden wealth.
This statement was credited to the U.K. accountancy group UHY Hacker Young by Cointelegraph. According to the group, the statement of assets form that is used in tax evasion will now include a crypto-focused section, such as Bitcoin (BTC), Ethereum (ETH), among others.
As the demand for the information on cryptocurrency holdings increases, the report stated that the form will also include special sections for other systems of exchange, such as the black market of peso exchange used by Mexican and Colombian cartels, including other unsanctioned currencies used in Africa, India, and China.
Regarding the new development, David Jones, UHY Hacker Young director said:
“HMRC suspects that an increasing amount of hidden wealth is slipping through its fingers thanks to the rise of cryptocurrencies and other unsanctioned money transfer systems. This demand for information is an important step in HMRC’s fightback against that.”
“A defence of ignorance of the law in this booming sector will no longer wash with the taxman.”
Jones further explained that the demand of Her Majesty’s Revenue and Customs (HMRC) for information on digital currency may not be necessarily met, but whoever fails to declare his/her crypto holdings in the course of an investigation and later uncovered by the authorities would face additional criminal charges.
“While criminals can still choose to not declare these assets, doing so gives HMRC another opportunity to bring criminal charges against them if their forensic work finds a hidden Bitcoin wallet.”