Malaysia’s tax department has scored a big win against tax evasion this week with a special operation targeting cryptocurrency traders. The operation codenamed “Ops Token”, raided 10 locations across the Klang Valley at the same time.
A team of 38 officers from the Inland Revenue Board (IRB), police, and cybersecurity experts seized data from computers and phones used for cryptocurrency trading.
According to officials, a huge amount of undeclared crypto trading profits that should have been taxed were found
Moreover, the data will allow the IRB to accurately calculate just how much tax revenue was lost from these hidden trading activities. Early estimates point to millions of ringgit in unpaid taxes on capital gains from crypto trading.
Furthermore, the investigation uncovered companies and partnerships that were created just to carry out crypto trading without paying taxes. Authorities believe these entities participated in large-scale deliberate tax evasion by concealing their trading profits.
In response, the head of the IRB issued a firm warning to all cryptocurrency traders: you must pay income tax on any crypto trading profits in Malaysia. He advised traders to come forward immediately and properly report all trading gains to avoid penalties or possible criminal charges.
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