Cryptocurrencies

Malaysia’s federal agency Inland Revenue Board (IRB) has launched a special operation

Malaysia’s federal agency Inland Revenue Board (IRB) has conducted a special operation dubbed “Token Ops” to reduce tax revenue leakage related to cryptocurrency trading.

Local media outlet The Malaysia Reserve reported that 38 members of the Royal Malaysian Police and CyberSecurity Malaysia (CSM) attacked 10 different locations in the Klang Valley.

The operation targeted companies that did not properly report their cryptocurrency trading activities to the federal agency. This initiative is part of the local government’s desire to reduce tax revenue leakage and improve the country’s tax administration.

Malaysian police obtain evidence of tax evasion

Authorities claimed that several limited liability companies and corporations had been established to trade cryptocurrencies. The federal agency believes that these entities avoided reporting their taxes. The Immigration and Refugee Board stated:

“Through the operation, cryptocurrency trading data stored on mobile devices and computers was found, and we managed to determine the value of the digital assets traded, causing a very significant tax revenue leak.”

Furthermore, the IRB stated that the data obtained during the process will be analyzed to determine the value of crypto assets in circulation and the resulting profits. This will help the federal agency determine the value of tax leaks that were not properly reported to the IRB.

IRB chief warns crypto traders against filing taxes

IRB CEO Datuk Abu Tariq Jamaluddin explained that those involved in cryptocurrency trading in the country are subject to Malaysian income tax rules. The official warned cryptocurrency traders to properly report their cryptocurrency taxes to nearby IRB offices as soon as possible before the IRB takes compliance action.

The IRB hopes that this process will increase Malaysia’s tax revenue by increasing tax efficiency and reducing leakages. The agency also believes that it will contribute to the sustainability of the country’s revenue collection.

about: Microsoft injects $2.2 billion into Malaysia to develop cloud and artificial intelligence

Cryptocurrency Regulation in Malaysia

In Malaysia, cryptocurrencies are legal and regulated by the Securities Commission (SC), a legal body responsible for regulating the country’s capital markets. Tokens are considered securities in the country and are subject to its securities laws.

The country’s central bank does not consider cryptocurrencies or tokens as payment instruments or legal tender. Additionally, companies that focus on cryptocurrencies are subject to the country’s tax laws.

review: Bitcoin’s “Second Layer” Isn’t a Second-Level Layer at All: That’s Why It’s Important

Leave a Reply

Your email address will not be published. Required fields are marked *