Denmark Investigating Bitcoin Exchanges to Find Tax Defaulters is Troubling - BITCOIN NET MAGZ

Denmark Investigating Bitcoin Exchanges to Find Tax Defaulters is Troubling

- 06.00

Denmark's tax agency has received the council's consent to inspect three neighborhood crypto exchanges.

Skat in its own Monday press release affirmed that it would acquire information on traders that were residing in cryptocurrencies such as Bitcoin between 2016 and 2018. The statement came as part of an ongoing evaluation against crypto-based tax defaulters.

In December 2018, Skat had confirmed that it would enquire 2,700 people who exchanged bitcoins on an unidentified Finnish exchange. After a month, the agency considers that exchanges within Denmark have facilitated untaxed crypto trading. It's reportedly seeking traders' information, including names, addresses, CPR amounts and potentially , CVR information.

Karin Bergen, the manager of Skat, stated that inspecting a Finnish bitcoin market is a little framework of a much bigger picture. He stated that Danish bitcoin trades would reveal more about the way traders employed cryptocurrencies to prevent tax liabilities.

"With the aid of the Danish Tax Council, we will for the first-time access the transactions made via the stock trades," he said. "This provides us entirely new opportunities in relation to control in the region. Without going too far, I believe that you can say this is a major market that we need to appear into."

Bergen refused to share more details.

After studying information of all of the dealers on the 3 Danish crypto exchanges, Skat will prepare a list to potential tax defaulters. The bureau will then contact them of a screening: to determine whether or not their transactions came under the purview of capital gain taxes.

"Changes will be made on the grounds of a specific and individual remedy that clarifies whether the transaction has to be included in the taxable earnings," wrote Skat in its own media release.

Taxing a Non-Currency

Skat defines bitcoin tax as what a individual owes to the bureau on his/her capital profits. It says that"the gain on the resale [of cryptocurrencies] has to be contained as private income. ... [and] losses could be deducted as a equalization deduction" On the other hand, the authorized readings vary in line with this reader. In accordance with lawyer Payam Samarghandi, Skat is contradicting with its statements which it made in 2o14. In it, the tax agency had stated that Bitcoin is not a money back.

Skat has not disclosed anything about how it could deal with the circumstance. Their earlier release only says that they would contact traders and ask for additional information if something does not match.

 

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