Reading Time: 2 minutesBitmain has been fined $3.55 million over tax violations
Chinese authorities found tax irregularities in its income tax payments
The company is also facing lawsuits over its bonus practices

Bitmain, one of the largest manufacturers of cryptocurrency mining devices, has been fined more than $3.5 million for failing to pay taxes according to reports from Chinese media. The penalty, reported by Chinese reporter Colin Wu, coincides with a rise in tax inspections within the digital asset industry. Wu reported that the company, which endured a three-year civil war that ended in 2021, was fined about $3.55 million by the Beijing tax bureau in April, mainly for unpaid personal income taxes. The news comes as Bitmain faces lawsuits from former employees over its age-based performance bonuses.

Chinese Crypto Clampdown Continues

The Chinese government has been clamping down on the crypto sector more meaningfully since 2021, with even legitimate crypto-related entities getting more stringent attention. It seems that Bitmain has become a victim of this increased attention having apparently fallen foul of China’s tax laws, with unpaid personal income tax being the chief area of concern for authorities:

The Chinese government has stepped up tax inspections on the cryptocurrency industry since last year, especially targeting bitcoin miners and large traders.

— Wu Blockchain (@WuBlockchain) April 11, 2023

Wu cited a Sina Finance report stating that Bitmain is facing the fine, which has been imposed by the municipal taxation bureau of Beijing, after being accused of failing to withhold and pay individual income tax on employee benefits, such as travel subsidies. According to the report, Bitmain was notified of its responsibilities by the Beijing tax authority in August 2022, but it failed to take the proper action.

Bimain Faces Employee Lawsuits

Bitmain, which stopped selling to mainland China in 2021 following the country’s mining ban, is also in legal trouble after being accused of discriminating against older workers, who are getting reduced bonuses compared to younger employees. As a result, some employees have quit the company and, according to Wu, are suing it over age discrimination.

The post Bitmain Fined $3.6 Million for Tax Violations appeared first on FullyCrypto.

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Filed under: Bitcoin - @ April 13, 2023 9:09 am