Chinese authorities have fined leading crypto mining hardware maker Bitmain for tax-related violations, local media reported. The sanction comes amid increased fiscal controls in the digital asset sector, according to information from the crypto community.
Bitmain fined for failing to pay income tax on behalf of employees
One of the world’s largest producers of devices designed for cryptocurrency mining, Bitmain, has reportedly been fined for unpaid taxes. The news was spread on social media by Chinese crypto journalist Colin Wu, also known by his ‘Wu Blockchain’ Twitter account.
Bitmain, the world’s largest bitcoin mining machine company, was fined around $3.55 million by the Beijing tax office in April, mainly for unpaid personal income taxes. https://t.co/wbXF3pFYxn
— Wu Blockchain (@WuBlockchain) April 11, 2023
Wu referred to a report by Sina Finance on Tuesday, according to which Beijing Bitmain Technology faces a hefty fine of nearly 25 million yuan (more than 3.6 million US dollars at the time of writing) imposed by the municipal tax office of the chinese capital.
The company allegedly did not withhold or pay personal income tax on benefits provided to its employees, such as travel allowances. The amount, owed under the Tax Administration and Collection Law of the People’s Republic, exceeds 16.6 million yuan (more than 2.4 million US dollars).
Bitmain was notified by the Beijing tax authority of its obligations in August 2022, the publication further noted. However, the company has yet to withhold or pay the aforementioned personal income tax, Sina Finance wrote.
In a subsequent cheep, Wu Blockchain noted that the Chinese government has intensified tax inspections in the cryptocurrency industry since last year. According to the crypto blogger, bitcoin miners and large cryptocurrency traders have been specifically targeted.
Following China’s crackdown on cryptocurrency-related activities, such as mining, in early 2021, Bitmain announced in October of that year that it would suspend deliveries of mining equipment to clients on the mainland. According to media reports, the Beijing-based company, which manufactures application-specific integrated circuits (SO C) mining platforms, was also considering moving most of its production to another part of the region.
Do you think the Chinese tax authorities will increase the pressure on cryptocurrency companies still operating in the country? Share your thoughts on the subject in the comments section below.
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