Japan tax agency launches KSK2, eyes tighter scrutiny of crypto tax filings

Japan’s National Tax Agency launched its next-generation integrated tax management system, KSK2, on Sept. 24, a move expected to tighten scrutiny of tax reporting tied to cryptocurrency transactions, CoinPost reported. KSK2 integrates individual and corporate data based on My Number personal IDs and corporate numbers, and uses AI to detect improper filings. In that context, tax firm Progo said crypto transactions are increasingly becoming a key focus of AI-based reviews based on annual trading reports from cryptocurrency exchanges, bank deposit and withdrawal records, and CRS data shared with overseas tax authorities. Progo added social media posts about crypto profits could also be checked against actual tax filings.