Japan Activates KSK2 Tax System to Tighten Crypto Filing Checks
The system combines tax data and applications previously handled by tax type, allowing broader analysis of exchange, banking and overseas tax information.
Japan’s National Tax Agency began using its KSK2 tax system on Sept. 24, integrating information across tax types to strengthen filing checks that may include crypto-asset reporting.
KSK2 combines data and applications that were previously managed separately by tax type. The integration is designed to improve tax-information analysis and the review of taxpayer filings.
Data that can be used in those checks includes annual transaction reports from crypto asset exchanges, bank records and information exchanged with overseas tax authorities. Those records can help identify potential omissions in crypto-asset reporting.
The system update was completed on Sept. 24. The agency has not disclosed specific artificial-intelligence analysis rules for crypto-asset data.
