The investigation against Israelis who hold and trade in virtual currencies without reporting to the tax authority is expanding, as part of which the suspect (37) from Be’er Sheva was arrested today on suspicion of omitting NIS 4.3 million in trading in virtual currencies, in order to evade paying taxes. Last week, a Jerusalem resident was arrested, in his early 30s, on suspicion of concealing income in the amount of more than NIS 11 million generated from virtual currency conversion transactions.
As indicated in the suspect’s arrest request submitted by the Diamond Unit – the National Unit for Combating Crime in the Tax Authority, the suspect works as an employee of the company in the field of information systems, software and Internet analysis. As someone who has made very many transactions of buying and selling various virtual assets, at least since 2017, without reporting the profits to the tax authority.
The undercover investigation found many transactions of virtual currency exchange such as BCHABC (Danish currency), BTC (Bitcoin), BTG (Bitcoin Gold), Lightcoin and more in the amount of millions of shekels and also found addresses of digital wallets associated with the suspect, and their use is intended, according to the suspect. , Blur the identity of the suspect as the owner of the funds.
In the reports of the suspect to the Tax Authority for the years 2017 – 2019, his income and the income of his spouse appeared as employees only and the income generated from his employment in virtual currency trading in the amount of more than NIS 4.3 million was omitted. Moreover, in the suspect’s reports for the years 2018 – 2019, he was not marked as obligated because he had income from the realization of virtual currencies.
During his interrogation, the suspect confirmed that he had opened a trading account on the stock exchange, and invested about NIS 100,000 in it, and also confirmed that he had performed operations in the trading arena, mainly Bitcoin and Lightcoin. And at one point transferred some of the money to another stock exchange for the purpose of investing in a Dogcoin-type currency. When asked why he did not report to the accountant on virtual currency trading he replied, among other things, that “this is not income and if I am wrong, I will learn” and when asked again why he did not report this income he replied that he did not withdraw the money but continued to invest. The years he did not earn.
The Honorable Chief Justice David Shoham The Magistrate’s Court in Rishon Lezion granted the diamond unit’s request and ordered the release of the suspect on bail, while depositing financial guarantees.