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Israeli Tax Authorities Investigate Two NFT Creators for Tax Evasion

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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 Avra…

Israeli Tax Authorities Investigate Two NFT Creators for Tax Evasion

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

Interpretation of the news:


NFTs or non-fungible tokens have been making headlines recently for their explosive popularity in the digital art world. These tokens provide a way to verify ownership and scarcity for digital assets, and their sales have resulted in millions of dollars in revenue for artists and collectors alike. However, like all financial transactions, these sales are subject to taxation laws, and it seems that two NFT creators in Israel may have neglected to declare their earnings truthfully.

Avraham Cohen and Antony Polak, owners of the Hollyrocknft.com website, are currently being investigated by Israeli tax authorities for tax evasion. The pair reportedly created and sold NFTs based on 3D scans of Western Wall stone through their website, but failed to declare the tax on their earnings.

This news highlights the need for clear regulations and guidelines for the taxation of NFT sales around the world. As the market for NFTs continues to grow, it will become increasingly important for countries to address the issue of how these digital assets should be treated from a tax perspective. This will ensure that creators and collectors are aware of their obligations and are able to comply with the law.

The case of Cohen and Polak also serves as a warning to others in the NFT industry that tax evasion will not be tolerated. As digital transactions become more prevalent, authorities will likely become more vigilant in enforcing taxation laws, and those who try to evade their obligations may face severe consequences.

In conclusion, the investigation of Cohen and Polak by Israeli tax authorities is a reminder that the NFT industry is not exempt from taxation laws. As this market continues to develop, it is important for creators, collectors, and regulators to work together in order to establish clear guidelines regarding the taxation of NFT sales. By doing so, everyone involved in this exciting new industry can ensure that they are operating within the law and contributing to the wider economy.

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