Israeli Tax Authorities Investigate NFT Creators for Tax Evasion

03/05/2023 09:01 • Metaverse Matters • 144 views

On March 5, according to a report from the Israeli tax authorities on Friday, the agency is investigating the tax evasion of two NFT creators. The two are Avraham Cohen and Antony Polak, who are the owners of the Hollyrocknft.com website. According to the tax authorities, the two people sold the NFT created by 3D scanning based on Western Wall stone through the website, but did not truthfully declare the tax.

Israeli tax authorities accused the creator of “Western Wall” NFT of tax evasion, involving more than US $2 million

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The Israeli tax authorities are currently investigating the tax evasion allegations against two NFT creators, Avraham Cohen and Antony Polak. The two individuals are believed to have sold NFTs, created through 3D scanning based on Western Wall stone, through their website, Hollyrocknft.com, but they did not declare the taxes owed to the authorities.

NFTs or non-fungible tokens have gained immense popularity in recent years, especially in the art world. These are unique digital assets that can be bought and sold like any other commodity but come with the added advantage of being one-of-a-kind. NFTs are created using blockchain technology, which ensures that they cannot be replicated. As a result, NFTs have become a valuable asset for many artists, musicians, and other celebrities.

However, with the rise in popularity of NFTs, there has been an increase in the number of tax evasion cases. In this particular instance, Cohen and Polak apparently did not declare the taxes owed to the Israeli tax authorities from the sale of their NFTs through their website. This behavior is considered fraudulent and illegal.

The Israeli tax authorities’ investigation into Cohen and Polak’s alleged tax evasion highlights the importance of addressing this issue. It is important for NFT creators to understand their tax obligations, and failure to do so may result in serious legal consequences.

Although the investigation is still ongoing, it is possible that Cohen and Polak could face hefty fines or even imprisonment if found guilty of tax evasion. This case also highlights how important it is to regulate the NFT market, especially as it grows in popularity. The potential for tax evasion, fraud, and money laundering are all significant concerns that need to be addressed by governments and regulatory bodies.

In conclusion, the ongoing investigation by the Israeli tax authorities into the tax evasion allegations against Cohen and Polak should serve as a warning for other NFT creators to ensure that they are complying with their tax obligations in their respective countries. Failure to do so could result in serious legal consequences.

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