Indian officials are pursuing crypto taxes, starting with WazirX owned by Binance
In India, Bloomberg
reported Monday, a major cryptocurrency exchange-owned company is being
targeted for alleged tax evasion.
The goods and service tax (GST) authority of India is investigating Binance's local firm WazirX after it found that 400 million rupees (about $5.4 million) in taxes were allegedly evaded, according to a report.
WazirX told Bloomberg that "There was an ambiguity in the interpretation of one of the components which led to a different calculation of GST paid.”
Adding, “However, we voluntarily paid additional GST in order to be cooperative and compliant. There was and is no intention to evade tax.”
According to the firm, which was bought by Binance in 2019, claims any alleged tax evasion was not intentional. A company that owns the WazirX platform, Zanmai Labs, said regulators in India need to clarify tax regulations.
This investigation may herald a new era for India's tax authorities since cryptocurrency could be a source of revenue as well as a fraud target.
These reports arrive before state elections. According to the report, the administration is expected to miss the budget deficit target at the end of the financial year.
Several Chinese mobile companies had their Indian offices searched two weeks ago to look for evidence of possible tax evasion. ZTE was accused of making 30% gross profit on equipment sales, reporting heavy losses, and paying non-existent companies.
CBW - External Analyst