Malaysia Cracks Down on Crypto Tax Evaders
Operation Ops Token Targets Tax Revenue Leakage
The Malaysian Inland Revenue Board (IRB) has intensified its efforts to curb tax evasion in cryptocurrency trading through a special operation designated Ops Token. This initiative aims to mitigate significant tax revenue leakage attributed to undeclared crypto trading profits. The elaborate operation, held in collaboration with the Royal Malaysia Police and CyberSecurity Malaysia (CSM), involved executing raids at ten different locations across the Klang Valley.
Ops Token mobilized a team of 38 personnel from the Royal Malaysia Police and CSM. This concerted move specifically targeted companies and entities that had not been compliant in reporting their cryptocurrency trading activities to the federal agency, prompting concerns over substantial financial discrepancies.
Evidence of Tax Evasion and Official Warnings
During the raids, authorities successfully retrieved cryptocurrency trading data from various mobile devices and computers. Preliminary assessments suggest considerable tax revenue leakage as a result of these unreported transactions. The agency’s objective now is to thoroughly analyze the data to estimate the undeclared profits and determine the true extent of crypto assets traded by these entities.
In light of these findings, IRB CEO Datuk Abu Tariq Jamaluddin has issued a stern warning to crypto traders. He strongly urges them to promptly declare their crypto taxes at the nearest IRB offices, thereby avoiding potential compliance actions from the tax authority. This measure underscores the importance of maintaining transparency and adherence to existing tax laws.
It’s noteworthy that cryptocurrency in Malaysia is regulated by the Securities Commission, which categorizes tokens as securities, making them subject to securities laws. While the central bank does not recognize crypto or tokens as legal tender or payment instruments, businesses centered around crypto activities are mandated to comply with the country’s income tax regulations.
The IRB anticipates that Ops Token will significantly boost Malaysia’s tax revenue by enhancing tax compliance and reducing opportunities for evasion. This initiative is expected to foster a more robust revenue collection framework, contributing to the financial sustainability and economic stability of the nation.
