THE CHANCE OF TAX EVASION AND TAX AVOIDANCE OF CRYPTOCURRENCY TRANSACTIONS IN INDONESIA

Abstract

Along with the development of the times, a new type of money instrument emerged called cryptocurrency. Cryptocurrency is a digital currency by its decentralized nature. Decentralization means a method of carrying out transactions without a third party as an intermediary. However, there are also risks resulting from investing in this type of cryptocurrency, such as tax evasion due to the nature of this cryptocurrency, namely decentralization so that if a suspicious transaction occurs it is difficult to freeze or block accounts and money. This research applies normative legal research methods. Based on the research conducted, it was found that cases of tax evasion in cryptocurrency occur due to the anonymity feature where the real identity cannot be displayed and protected by the system. So that there is a gap to commit crimes such as tax evasion. Cases of tax evasion in cryptocurrency can be prevented due to collaboration between platforms/exchangers and PPATK to minimize the occurrence of these cases, and also the practice of tax avoidance occurs because there is still unclear taxation system on cryptocurrencies. It can be concluded that tax reporting on cryptocurrency profits must be reported and the procedure is not difficult. It is hoped that there will be awareness from investors to report it themselves because the nature of taxation in Indonesia is self-assessment.