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Writer's pictureGlyn MacLean

Offsetting Losses Against Tax

#ACCOUNTANTS, #LAWYERS & other Professional Services AGENCIES: FINANCIAL CRIME VICTIMS could benefit from ACCOUNTING: TAX DEDUCTIONS OFFSET from Victim Cryptocurrency, Cyber and Financial Investment Fraud losses.

If you are an accountant, lawyer, investigator or other support agency, you may be able to do something realistic and constructive to help victims who have lost significant amounts of money due to a financial crime in an investment fraud.

A victim of a financial crime who has experienced financial loss may be able to offset their investment losses against income tax in their country of residence. You could potentially help your client to alleviate some of the financial damage and ongoing hardship that has occurred to them through no fault of their own.


A confirmation of loss can be used as a 'certificate of currency' pertaining to forensic confirmation of the loss amounts. This could potentially assist legitimate victim loss claims that have occurred due to a financial crime, allowing the confirmed losses to be offset as tax deductions in some jurisdictions.

Check with your national Inland Revenue Tax Collection Agency and a chartered accountant to see if this applies to you or someone that you know.


Please note that for the confirmation of loss to be valid, we need to confirm the chain of custody of the loss as a matter of due diligence and for validation.


This starts at source with bank statements that demonstrate wire funds transfer from the financial crime victim to a cryptocurrency exchange, corroborative evidence of digital asset transfers from the exchange to the alleged criminal wallet, and at a minimum, a statement of facts or affidavit of the incident and documentary evidence of the financial crime.


A certificate of loss does not need a comprehensive and expensive investigation to identify the persons unknown or achieve identity attribution or track and trace to a financial output end point. The aim here is to validate the financial investment loss claims of the victim to help an accountant coordinate legitimate tax deductions. This is particularly helpful for financial crime victims who are experiencing financial distress and could benefit from relief.

Asset forfeiture and restitution processes can take a very long time. A financial crime victim is often under considerable financial stress. If we are aiming to help prevent incidences of self-harm by despondent victims, then we ought to assume some responsibility for doing the small things that can make a big difference and which are in within reach.


 Of all the legitimate paid professional services that are available to victims of a financial crime, this particular activity is one of the least expensive. Tax deductions offset can have a substantially positive impact on the financial crime victims overall financial situation, and on their mental health and well-being.


Should you need investigative assistance please reach out via website.


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