Israel’s Tax Department has Cracked Down Two NFT Sellers for not Disclosing $2.2 Million in Revenue
Israel’s tax department has arrested two makers of NFTs who allegedly did not disclose nearly $2.2 million in revenue. This is the second major crackdown after the recent discovery of an NFT creator from Tel Aviv who was engaged in a similar offense. The Tax Authority believes that the creators, Avraham Cohen and Antony Polak took substantial sums of money from the sale of their NFTs through Holyrocknft.com but failed to inform about the profit to the authorities.
The authority is currently investigating the case and evaluating the accuser’s financial history. What’s more suspicious is that a portion of these funds have been moved to different wallets, which raised concerns. NFTs have become prominent in recent years, with artists and creators selling digital art, music, and other forms of content as unique, one-of-a-kind tokens.
These tokens are then sold on various online platforms, with some fetching millions of dollars at auction. However, as the prominence of NFTs has grown, so too has scrutiny from regulators and tax authorities around the world. In Israel, the Tax Authority has been continuously taking strict measures in this regard, with several high-profile cases of tax evasion associated with the NFTs coming to light in recent months.
What Steps have been taken by the Authorities to Combat these issues?
To combat these recent challenges, the Israeli government has recently revealed its intentions to unveil new regulations aimed at guaranteeing that creators of NFTs pay their fair share of taxes. Despite the rising surveillance from regulators and tax authorities, the NFT market continues to gain massive traction worldwide, with new artists and creators arriving in the space every day.