The Japanese trader was found guilty of tax evasion when he bought bitcoins by the Ishikawa Prefecture Court. He is now facing a year in jail and a $200,000 fine.
Hideji Matsuda, 56, hid his financial activities related to the purchase of cryptocurrencies from 2017 to 2018, after which the Kanazawa court charged him with violating the Income Tax Act.
Matsuda knowingly committed a crime by failing to send appropriate documentation to the tax office containing details on his cryptocurrency financial transactions, according to the court. According to Matsuda, the proceeds from his actions totaled 1.2 million yen, or $11,000. In reality, the trader was paid hundreds of times more – 74 million yen, or $678,000.
The defendant admitted to the prosecutor that he was not given specific guidance about how to measure the benefit from cryptocurrency trading profits correctly. Despite the fact that lawyers claimed that the man had filed a motion to change the issue of measuring cryptocurrency profits before the charges were filed against him, the prosecutor’s office stood firm. The court also agreed to deny the clemency appeal and issued a final judgment.
The case is especially noteworthy because it is the first time in Japan that an individual has been found guilty and convicted for tax evasion using cryptocurrencies. The trial started in the year 2020.
By the way, cryptocurrency companies in Japan, whether mining or selling digital currencies, are subject to a tax rate of up to 55 percent.