Denmark is set to enforce robust bitcoin tax compliance at its tax agency has received information about 20,000 crypto owners in the country. The Scandinavian nation is the latest country to move towards combating crypto tax evasion.
Danish Tax Agency Authorized to Gather Bitcoin Tax Info
At the start of 2019, BTCManager reported that the Danish government was set to impose taxes on crypto trading. According to an announcement on the Danish Tax Authority’s website, about 20,000 crypto owners in the country have received warning letters.
These warning letters follow the release of trading information by the tax body from crypto exchanges in the country. As part of the warnings, Danish crypto traders have been told to accurately report their crypto tax filings or face stiff penalties.
Commenting on the move towards more robust crypto tax compliance, Kim Tolstrup, deputy director of the country’s tax agency, remarked:
“This is the first time we have an insight into how many people have bought or sold cryptocurrency in Denmark. We now have a solid database to move forward in our work, which is about ensuring that citizens and businesses pay the right taxes if they make a profit and get a deduction if they have suffered a loss. In this way, we can also provide citizens with even better guidance.”
Whilst Denmark’s tax body is keen to combat bitcoin tax evasion, the agency concedes that the new measures do not constitute a witch hunt against crypto owners. The Agency’s statement encouraged virtual currency traders who might have submitted incorrect bitcoin tax filings to make the necessary amendments.
Danish authorities say they are also working on modalities to improve the bitcoin tax reporting process.
Tax Authorities Keen on Crypto Tax Compliance
Earlier in December, BTCManager reported that South Korea was looking to levy taxes on crypto capital gains. South Korea isn’t alone as several governments appear to be waking up to the revenue they might accrue from enforcing strict cryptocurrency tax compliance.
In the U.S., the IRS has sent a series of warning letters to crypto owners. Like in Denmark, America’s tax body continues to request and receive information from cryptocurrency exchanges.
Meanwhile, lawmakers and other stakeholders continue to advocate for clearer cryptocurrency tax laws. One of these proposed bills might include a ‘de minimis’ exemption for crypto transactions below a certain threshold. Some commentators, however, argue that such an exemption might lead to even more bitcoin tax evasion.
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