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Reports by tax consultants in South Africa indicate that the South African Revenue Authority (SARS) is approaching individual taxpayers and asking them to disclose cryptocurrency trades and purchases. The audit requests also included questions on the purpose for which taxpayers purchased cryptocurrency as well as letters from the cryptocurrency trading platform(s) confirming the investments. Relevant trading schedules for the period and bank statements were also requested. Analysts view the audit requests by SARS as a move towards the formalisation of cryptocurrency.
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