Japanese authorities are not shy about hunting down those considered to be tax evaders of crypto-currencies. A court in Ishikawa sentenced one of them, a 56-year-old man, to a year in prison and a $200,000 fine.

The convict failed to disclose his BTC trading activities in 2017-2018.

According to the Chunichi, a Kanazawa District Court judge fined Hideji Matsuda, an office worker in Ishikawa, more than 22 million yen ($200,000) and sentenced him to one year in prison for violating the income tax law.

The court found that the individual did not knowingly file accurate tax returns with respect to his bitcoin (BTC) trading activities. According to court documents, Matsuda did not specify the 2017-2018 period.

In addition, the court said the office worker had falsified data on his tax return because he claimed to have made just 1.2 million yen ($11,000) in profit. In fact, he received a total income of 74 million yen ($678,000) and paid no taxes.

When his lawyers questioned Matsududa during the hearing, Matsududa argued that he had no idea how cryptocurrency income was calculated. But the prosecution said otherwise. Instead, they believe the 56-year-old was selfish and self-centered.

Matsuda’s lawyers have already promised leniency, saying the man has filed motions to amend the case and properly execute the tax documents.

However, the judge rejected this offer and imposed a fine. At the end of the trial, Matsuda only commented on the verdict: There is no doubt about that.

An unprecedented case in Japan

This lawsuit is the first of its kind in Japan. This makes Matsuda the first person in the land of the rising sun to be convicted of evading tax on bitcoin. The study began in 2020.

In Asian countries, activities related to cryptocurrencies, such as mining, trading and lending, are taxed at 55%.

What do you think of the conviction of a Japanese crypto tax evader? Let us know your comments in the section below.

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