Chinese authorities have fined Bitmain, a leading crypto mining hardware manufacturer, for tax-related violations, local media reported. According to information from the crypto community, the penalties come amidst increased tax checks in the digital asset sector.
Bitmain fined for failing to pay income taxes on behalf of its employees
Bitmain, one of the world’s largest manufacturers of devices designed for cryptocurrency mining, has reportedly been fined for failure to pay taxes. The news was spread on social media by Chinese crypto journalist Colin Wu, also known by his Twitter handle “Wu Blockchain.”
Bitmain, the world’s largest bitcoin mining machine company, was fined about $3.55 million by the Beijing tax bureau in April, mainly for unpaid personal income taxes. https://t.co/wbXF3pFYxn
— Wu Blockchain (@WuBlockchain) April 11, 2023
Wu referred to areportpublished by Sina Finance on Tuesday, which stated that Beijing Bitmain Technology faces a hefty fine of about 25 million yuan (over $3.6 million at the time of writing) imposed by the Chinese capital’s municipal tax bureau The company said.
The company allegedly failed to withhold and pay personal income tax on benefits it provided to employees, including travel subsidies. The amount due under the People’s Republic of China’s Tax Collection and Management Law exceeds 16.6 million yuan (over $2.4 million).
Bitmain was notified of its obligations by the Beijing tax authorities in August 2022, the publication further noted. However, the company has yet to withhold and pay the aforementioned personal income tax, Sina Finance wrote.
In a subsequent
tweet
, Wu Blockchain noted that the Chinese government has stepped up tax investigations into the cryptocurrency industry since last year. According to the crypto blogger, bitcoin miners and large cryptocurrency traders have been particularly targeted.
Following China’s crackdown on mining and other crypto-related activities in early 2021, Bitmain announced in October of that year that it would end deliveries of mining equipment to mainland customers. According to media reports, the Beijing-based company, which manufactures application-specific integrated circuit (ASIC) mining rigs, was also considering moving most of its production elsewhere in the region.
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