The Federal Revenue Service (RFB) in response to the Administrative Council for Economic Defense (Cade) stated that the National Classification of Economic Activity (CNAE) proper for the market of cryptomorphs makes no difference for the purposes of the declaration of IN 1.888/19, which deals with cryptomorphs.
The document was added last Friday (09) to the administrative inquiry that aims to investigate the anticompetitive conduct of banks with the closing of exchanges accounts.
According to the agency, this register is “an important data in the categorization of economic agents,” but the fact is that the IRS requires data on its own transactions with Bitcoin Up and the CNAE would be indifferent on this point.
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“The exchanges, legal entities and individuals are required, for example, data on the date of the transaction, the holders involved in the business, the cryptoactive transacted, the fees charged, among other information”.
According to the letter sent by Cade, the Federal Revenue would have until October 9th to present its answer on whether the CNAE itself for the exchanges would have any repercussion on the capture of information provided for in the Normative Instruction RFB No. 1.888/2019.
The antitrust agency also requested “other information that the RFB considers relevant on the matter. The RFB responded to the document within the seven-day deadline, but was brief in its response without providing any details or information beyond what was referred to the CNAE and the Normative Instruction dealing with the statement on operations with cryptomorphs.
CNAE of “Bitcoin” and the banks
The National Classification of Economic Activity for the companies that acts on the cryptomoeda market was a regulatory advance of this sector, once before this CNAE, the exchanges brought other classifications which were not specific for this activity.
The lack of own CNAE ended up becoming even motivation for banks to close the accounts of these companies. The question, however, is that even after the own CNAE was instituted for the sector, the banking institutions still have justified their acts, as if nothing had changed as Bradesco, Banco do Brasil and Sicredi mentioned in their last manifestations.
Santander, on the other hand, recognized that the Classification of Economic Activity proper for the market of cryptomoeda can help in combating fraud. Itaú, on the other hand, did not hide its aversion to the market by associating transactions with cryptomaps to money laundering and terrorism, even though the bank is a partner of a brokerage firm that works with Bitcoin.
The Federal Revenue Service’s answer only shows that the agency is not interested in the economic activity registered in the exchanges. What the IRS wants to know is about the data behind the transactions.
The income tax return already brings the obligation for the person who has cryptomains to inform this data to the RFB. With IN 1.888/2019, besides that the cryptomoedas brokers started to have to inform the data of the operations and the data of the holders.
The identification of the people who are trading cryptomaps in these brokers became more rigid. In addition to having to declare information on operations with cryptomoedas, Exchanges now have to inform the CPF numbers, in the case of individuals residing in Brazil; and CNPJ, if the person trading cryptomoedas is of a legal nature.
For transactions carried out by persons residing or domiciled outside Brazil with the Brazilian Exchanges, these companies now have the obligation to inform the Tax Identification Number abroad (NIF).
This should facilitate the work of the IRS when crossing the data to find out who has cryptomoedas and failed to declare in the income tax, as was mentioned by the accountant specialized in cryptomoedas Ana Paula Rabello in her e-book Declaring Bitcoin.
In one of the excerpts of the book, Rabello explains in detail:
For transactions carried out by persons residing or domiciled outside Brazil with the Brazilian Exchanges, these companies now have the obligation to inform the Tax Identification Number abroad (NIF). This should facilitate the work of the IRS when crossing the data to find out who has cryptomoedas and failed to declare in the income tax, as was mentioned by the accountant specialized in cryptomoedas Ana Paula Rabello in her e-book Declaring Bitcoin.