The director of the Russian Federal Tax Service (SNSF), Daniil Egorov, has announced during an interview with a Russian publication- RBC- that the agency is currently monitoring the crypto scene to stop tax evasion activities.
In the interview, he states that cryptocurrencies are capable of eroding the Russian tax base if not monitored properly. He added that this could be salvaged since cryptocurrency transactions could be tracked. The traceability of the transactions gives the Tax Service a leeway to release automated tracking systems that will analyze large volumes of data.
“When you step into the digital space, you always leave a mark somewhere. And it’s only a matter of time before this trail is identified, ”Egorov said.
Egorov announced that the Russian Tax Service was devising new systems of responding to tax evasion activities in the crypto realm, with the intent of stopping them from happening. The SNSF intends to nip it in the bud instead of merely identifying those that are involved.
“We would like to find solutions that end a problem as a phenomenon rather than just identifying the actions of a specific player,” Egorov added.
Earlier this year, the Russian State Duma enacted a cryptocurrency taxation bill that compelled Russian residents to notify the authorities of any transactions that went above the benchmark of $ 7,800 annually.
Months later, the State Duma decided to inaugurate a committee to oversee the crypto tax activities.