Tax Practitioners View on Tax Compliance Regarding Crypto Assets

Abstract

Purpose: This study aimed to examine the challenges and views of tax practitioners in South Africa regarding tax compliance in relation to crypto assets. This includes the application of the current tax legislation as well as the tax practitioner’s skills in applying the crypto assets rules. Design/Methodology/Approach: A qualitative approach was applied to the research methodology to understand the perspectives of tax practitioners regarding tax compliance of crypto assets. The study employed a purposive, non-probability sampling technique to select nine registered tax practitioners. Semi-structured, four face-to-face interviews and five telephonic interviews were conducted with the participant’s consent to collect data. Findings: The results reveal that tax practitioners lack the necessary knowledge to apply the legislation regarding crypto assets. Furthermore, the findings show that fear of being penalized, corruption, and government expenditure are some of the factors that affect tax compliance tax. Implications/Originality/Value: The study recommends that the tax authority in South Africa establish webinars, seminars, workshops, and assessments for new regulatory changes, such as crypto assets. Also, it ensures that tax practitioners can practically apply new regulatory frameworks by creating simulation scenarios on e-filing.

Keywords

• Crypto assets
• Tax knowledge
• Tax practitioners
• Tax compliance
• Self-assessment