5 nations oppose crypto experts and investigators to target tax crimes
The Joint Chiefs of Global Tax Enforcement (J5), an international anti-tax fraud group, hosted investigators, cryptocurrency experts and data scientists at “The Cyber Challenge” to track individuals and organizations that commit tax evasion.
The members of the J5 are made up of criminal intelligence communities from Australia, Canada, the Netherlands, the United Kingdom and the United States, which are involved in combating global and international tax crimes and money laundering.
The group includes the Australian Taxation Office, the Canada Revenue Agency, the Dutch Fiscal Information and Investigation Service, Her Majesty's Revenue and Customs from the UK and IRS-CI from the United States. The participants included experts from the J5 countries who were tasked with facilitating the use of data from a variety of open and investigative sources available to each country.
In the year Since its inception in 2018, J5 has hosted five such events. In the year In 2022, the fourth event focused on decentralized tokens (NFTs) and decentralized exchanges (DEX). Sharing details about the latest 2023 event, the US Internal Revenue Service report said:
It is the first challenge in which Financial Intelligence Units (FIUs) from each J5 country have participated. The private sector is represented by blockchain analytics companies Chinalysis, Blocktress and Anchain, which is the biggest collaboration challenge to date.
In the process, J5 generated significant leads for further investigation that, in the past, helped secure multi-million dollar ventures such as the BitClub network. Australian Taxation Office Deputy Commissioner John Ford said:
“This collaboration between public and private specialists not only results in practical results, but also shares professional training, techniques and processes, which are critical for participants to remain active and productive in a rapidly evolving work environment.”
Ryan Ryder from Chinalysis, the internal transparency of crypto, in collaboration with international government and private sector experts, pointed out that it is possible to “cooperate to identify and close illegal activities”, a task that is impossible in traditional finance.
Related: G7 countries to launch AI code of conduct: Report
The Cointelegraph Innovation Circle recently featured seven crypto experts in an article to help web3 companies prepare for tax season. First and foremost, Web3 companies must constantly monitor the tax implications of their activities and work diligently to ensure compliance.
Additionally, members of the Cointelegraph Innovation Circle have suggested seven best practices to ensure tax compliance. Aside from avoiding shortcuts and finding an experienced crypto tax accountant, choosing a tax-friendly country while ensuring on-time payments is a top priority.
Other key factors include proper documentation of all activities, seeking professional legal counsel, transaction tracking, and using specialized software.
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