The Japanese government is planning to establish a system to prevent people from evading taxes on their cryptocurrency earnings. The government is resorting to the decision after considering the large profits made by people during the bullish market that ensured earlier this year. According to a survey by the National Tax Agency [NTA], over 300 individuals declared that they have earned at least 100 million yen, majorly from cryptocurrency trade in 2017.
According to a report by Mainichi.jp, the NTA will be able to demand information from transaction mediation businesses on customers. These customers will be those who are suspected of evading taxes on their crypto earnings. This system will be incorporated into the tax reform for the next fiscal year.
The profits gained from the cryptocurrency were, till now, declared as miscellaneous income under the Income Tax Act but after the system is introduced, they will have to be declared as income. As for the evaders, the NTA is determined to take stringent measures against them as the report says that the cases of tax evasion are increasing with the growth of crypto trading.
At the moment, the NTA just has the power to ask virtual currency trading and other businesses to provide information of their customers voluntarily. Following the reform, this provision will change to the NTA being able to demand information like the customers’ names, addresses, and even their 12-digit identification numbers.
However, adhering to personal information protection, the government will allow the tax authority to ask information on only those who are suspected to have earned at least 10 million yen from crypto transactions. The authority will have to confirm this suspicion or that the customer has failed to report at least half of that income. The NTA would also have the power to demand banking information opened under false names used for tax evasion.
According to the publication, the ruling coalition is aiming to formally introduce the system after the fiscal, starting in April 2020.
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XRP TipBot comes back online after a tiny downtime; Nothing to be worried about, says Wietse Wind
XRP TipBot’s website and the corresponding application suffered a downtime on June 23, 2019 for a few hours, during which the application wasn’t showing the balance of users. The website and the API for TipBot instead, displayed a “500 Internal Error.”
A Twitter user, @BlueNETGaming, tweeted Wietse Wind, inquiring the same. Wind confirmed that it was just an “infrastructure blip,” and that there was nothing to be worried about.
Oops! Sorry! Infrastructure blip. Really easy fix but I enjoyed an offline afternoon with my girls 😇 So I only found out after some time, when I checked my phone. Monitoring, messages, calls 😇 Social media tips went through during the downtime. Sorry! 😆
— Wietse Wind (@WietseWind) June 23, 2019
XRP TipBot is probably the first and most widely accepted use-case of XRP. It leverages the transaction settling time of XRP Ledger to make tipping easy among peers on Twitter, Reddit, and other platforms, and this was the brainchild of developer Wietse Wind.
After TipBot, a lot of other cryptocurrencies have tried to mimic this idea of facilitating tipping; an example being Bitcoin’s, Tippin.Me which leveraged Lightning Network for tipping users. Although successful, it isn’t as popular as Wind’s TipBot.
The reason behind the same is that XRP Ledger allows transaction settlement in under 5 seconds, which makes tipping fast and efficient, unlike Bitcoin’s transactions which take a few minutes for transactions to be confirmed.
This is same reason why XRP is being used as a liquidity provider for cross-border payments in Ripple’s proprietary product, xRapid.
XRP community is a tightly-knit community with people who are very bullish about XRP’s success. There are equally talented developers in the community who are developing apps that help create more use-cases for XRP.
SchlaubiDev is one such developer known for developing plugins for Gmail and Microsoft Office, plugins that allow a user to send XRP over e-mails.
Ripple has identified Wind and his team’s talent and inducted them into Xpring, which finances them to help develop more community-based apps for increasing XRP use-cases.
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