Binance, now registered in France, falls within the scope of the tax administration’s “right of communication”. An issue that may be sensitive to retailers.
As cryptocurrency giant Binance registered with the Autorité des marchés financiers (AMF) on Wednesday as a digital asset services (PSAN) provider, what are the tax implications? The question is even more important at a time when cryptocurrency holders in France have to file their tax returns. The law firm Revo Lawyers, which specializes in taxation and blockchain, has had a long discussion on this issue.
To date, as part of the 2022 tax return, a taxpayer who has opened an account on a foreign currency cryptocurrency exchange platform, such as Coinbase or Binance, must declare this account to the tax authorities using form 3916-BIS, even if his account is closed in the financial year mentioned. It does not matter how much money you keep on the platform. A user will have to fill in as many forms as there are platforms on which he is.
However, now that Binance France is registered as a PSAN, the user will no longer need to register this account on the above form from next year, ie when registering 2023 for the year 2024. Therefore, “good news”, identifies the law firm, although there is a visa.
Indeed, according to the law firm, Binance France now falls within the scope of the tax administration’s “right of communication”.
This right differs from the “request for international administrative assistance” (applies to persons abroad). The right of communication applies to persons (legal or natural) who have the status of trader “.
Therefore, Binance France may be in the sights of the tax administration, as it is a SAS as “commercial in form”. The documents that can be requested are those that are “related” to the activity of the respondent, such as transaction history, transactions, deposits or withdrawals. Management may make general requests for unknown information.
“In order to be valid, the request for anonymous information must include: the nature of the legal or financial relationship between Binance France and the taxpayer, as well as the period to which the request relates (maximum 18 months),” the company states. ” Lawyer. For Binance, in case of refusal to communicate, the company is subject to a fine of 10,000 euros “for each request for which not all or part of the documents or information have been notified”.
Fear of some active traders
To date, when an occasional person makes a capital gain on euro cryptocurrencies, he is subject (unless he chooses the progressive scale) to the single tax regime (at 30%) established under the law of the Pact. On the other hand, if a casual person exchanges a cryptocurrency with another cryptocurrency and makes a capital gain, he or she benefits from a tax exemption.
The situation is different when it comes to an investor who is considered a professional by Bercy. When it makes a cryptocurrency capital gain on cryptocurrencies, it is subject to the Industrial and Commercial Earnings (BIC) regime. The amount of tax can reach up to 66.2%.
According to the law firm contacted by BFM Crypto, there is a fear that retailers will be re-identified as professional traders by the tax authorities based on their data, which would no longer allow them to benefit from a tax exemption. An occasional sole trader who has declared a large amount of capital gains could be redefined as a professional.
“If you are considered a professional by the tax authorities, the consequences will generally be very serious, since you are supposed to have a SIREN number and have made the appropriate tax returns and social security returns. in case of doubt, to question the expediency of a rescript “, underlines the tax lawyer Marc Uzan in his blog.