- J5 is made up of criminal intelligence units from the US, UK, Australia, Canada, the Netherlands
- Juniper Research predicts losses from online payment fraud will rise by 17% this year
- J5's investigative leads have helped reveal multimillion-dollar crypto Ponzi schemes
The global tax fraud organization Joint Chiefs of Global Tax Enforcement (J5) welcomed crypto experts, investigators, and data scientists to an event called “The Cyber Challenge,” aimed at apprehending entities committing tax fraud, Cointelegraph reported.
The organization is made up of criminal intelligence communities from the US, the UK, Australia, Canada, and the Netherlands. They cooperate to combat international and transnational money laundering and tax crimes.
Tax due on staking rewards
The organization includes the Canada Revenue Agency, the Australian Taxation Office, His Majesty’s Revenue and Customs from the UK, the Dutch Fiscal Information and Investigation Service, and the US IRS-CI.
In August 2023, Banklesstimes.com wrote that the IRS had issued Revenue Ruling 2023-14, according to which an entity that stakes cryptocurrency native to a proof-of-stake blockchain must pay tax on any crypto they receive as rewards upon validation.
The IRS wrote about the latest 2023 event of the organization in a report:
This is the first Challenge where Financial Intelligence Units (FIUs) from each J5 country participated. Private sector was represented by blockchain analysis companies Chainalysis, BlockTrace, and AnChain making this the most collaborative Challenge to date.
Online payment fraud could reach $48B by year’s end
Juniper Research predicts losses from online payment fraud will rise by 17% this year, reaching $48 billion by the end of the year. To this end, participants in the J5 included experts tasked with optimizing data use with respect to information acquired from different sources available, open or classified.
The organization has generated significant leads for further investigation in the process. These have even helped reveal multimillion-dollar crypto Ponzi schemes, such as the BitClub Network.
Crypto experts’ contributions and best anti-fraud practices
Ryan Ryder from Chainalysis pointed out that the expertise of international specialists and crypto’s inherent transparency could serve to “identify and shut down illicit activity” in a way that is very hard to achieve in traditional finance.
Good practices to make sure stakeholders adhere to tax laws include making sure timely payments are a priority and choosing a tax-friendly country. In addition, experts recommend hiring crypto tax specialists and avoiding shortcuts.
