Denmark tax agency to crack down on unreported bitcoin profits
Swedish Tax Agency, Skattestyrelsen (SKAT) is cracking down on bitcoin traders who refuse to report their income. Karin Bergen, director of SKAT, released a warning, saying that if you haven’t reported profits from bitcoin,
“then you can hear from us so we can get your taxes in place.”
According to SKAT, an estimated $12 million in bitcoin profits was not reported between 2015 and 2017. Bergen intends to go after everyone who profited from bitcoin but didn’t report their earnings, a number estimated to be around 2,700.
It’s likely that many who failed to report their earnings believed they fell into a “grey zone” of the law. Denmark-based lawyer and bitcoin expert, Payam Samarghandi, says this simply isn’t true. According to Samarghandi, crypto assets fall under a 1903 tax act that taxes any property purchased and then resold for profit. SKAT provides all the information concerning cryptocurrency taxation on their website.
Recently, similar laws have been adopted by many countries worldwide. Just earlier this year, in October, Spain announced a new legislation, requiring everyone to report their cryptocurrency earnings for taxation purposes, and also in order to comply with the international AML (Anti Money Laundering) and KYC (Know Your Customer) laws.