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According to a report, the world’s largest Bitcoin mining machine company, Bitmain, was slapped by the Beijing tax bureau in April with a hefty fine of about $3.55 million.
The company was found guilty of mainly unpaid personal income taxes, as the Chinese government has been ramping up its tax inspections on the cryptocurrency industry since last year. However, Bitmain has not released any official statement regarding the fines.
It is not the first time Bitmain has previously caught the attention of the authorities on multiple occasions concerning tax-related matters.
The Fourth Inspection Bureau of the Beijing Municipal Taxation Bureau of the State Administration of Taxation recently imposed a penalty of approximately 24.9687 million yuan on the company for various infractions, as reported by the Qichacha APP.
The details of the violation indicate that under the “Tax Collection and Administration Law of the People’s Republic of China,” the organization must deduct and remit individual income tax for perks such as travel subsidies provided to its employees.
However, in August 2022, the inspectors delivered the “Notice of Order to Correct Within a Deadline” to Beijing Bitmain. But the company has failed to withhold and pay the above-mentioned personal income tax, totaling src6.6458 million yuan.
This latest development clearly indicates that the Chinese government is taking a firm stance against tax evasion in the cryptocurrency industry, particularly targeting Bitcoin miners and large traders.
The government is expected to persist in its efforts to control Bitcoin miners and major traders, and individuals who are caught breaking tax regulations could potentially face significant fines. The goal is to make certain that these companies adhere to the country’s tax statutes and rules.
The recent penalty levied on Bitmain highlights the importance of adhering to tax laws and regulations for all businesses operating in China.
Companies in the cryptocurrency sector need to take a proactive approach to comply with regulations to prevent facing significant fines and legal disputes down the road, given the heightened scrutiny of governments worldwide.
According to another latest update, Buncombe County in North Carolina is proposing to temporarily halt Bitcoin and cryptocurrency mining in the area for one year.
The county commissioners have expressed concerns about the impact of mining on the environment and the community. Currently, the county’s ordinances do not specifically address cryptocurrency mining.
A public hearing is scheduled for May 2, where community members can share their thoughts on the proposed moratorium. Similar concerns have been raised across the US, with a Texas Senate committee recently passing legislation limiting energy agreements for Bitcoin mining.
Meanwhile, US Bitcoin Corp reached a tentative agreement to resume operations after complying with regulations.
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