According to Bitcoin.com, the South African Revenue Service (SARS) has started issuing notices to cryptocurrency traders in South Africa, indicating that they are reviewing the tax affairs of these traders. The tax authority is collecting information from various cryptocurrency exchanges to assess compliance. Traders who fail to provide the required information may face criminal charges under the Tax Administration Act. Additionally, SARS may also investigate previously undeclared cryptocurrency ownership. Since SARS has not yet clarified whether cryptocurrency trading should be treated as capital gains or income, accurately recording the gains and losses from local and foreign cryptocurrency exchanges remains challenging.
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