Cryptocurrencies Can Be Used for Tax Evasion

The President of the Federation of Industry of the State of Sao Paulo (FIESP), Paulo Skaf, expressed fears that Brazilians might start using cryptocurrencies to evade taxes.

Earlier, Brazilian President Jair Bolsonaro made a proposal for tax reform. The head of FIESP expressed concern that the new tax system may allow citizens to use cryptocurrency to evade taxes.

“This reform will lead to transition to other forms of payment, such as cryptocurrency. It will be unfair: those who trade in cryptocurrencies do not pay taxes, and those who trade in real money will pay, ”Scaff said in a recent interview with the local newspaper Folha de São.

According to Bolsonar, the government seeks to simplify the system of paying federal taxes by combining five consumption taxes into a single federal tax at a rate of 15%. According to the publication in The Rio Times, it is expected that changes in income tax will be presented in August.

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In June, the Brazilian Revenue Service issued new rules, according to which cryptocurrency exchanges will be required to transfer data on user transactions to the Office. In addition, it became known last month that Brazilian regulators will create a regulatory sandbox for blockchain companies, and the country’s authorities are preparing a bill aimed at promoting the blockchain.