Chinese authorities have fined leading crypto-mining hardware maker Bitmain for tax-related violations, local media reported. The penalty comes amid increasing tax checks in the digital asset sector, according to information from the crypto community.
Bitmain fined for not paying income tax on behalf of employees
One of the world’s largest producers of hardware designed for cryptocurrency mining, Bitmain, has been fined for unpaid taxes. The news was spread on social media by Chinese crypto journalist Colin Wu, also known by his Twitter handle “Wu Blockchain.”
Bitmain, the world’s largest bitcoin miner, was fined about $3.55 million by the Beijing tax bureau in April, mainly for unpaid personal income taxes. https://t.co/wbXF3pFYxn
WuBlockchain April 11, 2023
Wu pointed out a a report by Sina Finance on Tuesday, according to which Beijing Bitmain Technology faces a hefty fine of about 25 million yuan (more than $3.6 million at the time of writing) imposed by the local tax office in the Chinese capital.
The company allegedly failed to withhold and pay individual income tax on benefits provided to its employees such as travel subsidies. The amount due under the Tax Collection and Administration Law of the People’s Republic exceeds 16.6 million yuan (more than 2.4 million dollars).
Bitmain was notified by the Beijing tax authority of its obligations in August 2022, the post noted. However, Sina Finance wrote that the company has not yet booked and paid the above-mentioned personal income tax.
Later tweetWu Blockchain noted that the Chinese government has stepped up tax inspections of the cryptocurrency industry since last year. According to the crypto blogger, bitcoin miners and major cryptocurrency traders have been specifically targeted.
After China cracked down on cryptocurrency-related activities such as mining in early 2021, Bitmain announced in October of that year that it would end deliveries of mining equipment to mainland customers. According to media reports, the Beijing-based company, which manufactures application-specific integrated circuit (ASIC) mining hardware, was also considering moving most of its production elsewhere in the region.
Do you think the Chinese tax authorities will increase the pressure on crypto companies still operating in the country? Share your thoughts on the topic in the comments section below.
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