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Denmark is cracking down on crypto merchants after discovering that two-thirds of native transactions made utilizing Bitcoin and different cryptocurrencies aren’t correctly taxed.
The nation’s current tax code, which is roughly a century outdated, isn’t designed to take care of the challenges posed by crypto belongings, the Danish tax ministry stated on Tuesday. It cited a heightened danger of fraud in addition to widespread errors in filings.
Denmark will begin by defining the precise challenges that cryptocurrencies pose to taxation authorities, after which resolve what to alter within the laws. In its assertion, the ministry famous that the present code “dates again to 1922 and subsequently doesn’t take monetary cryptocurrencies under consideration.”
Morten Bodskov, the nation’s tax minister, stated the purpose is to be “vigilant and make sure that our guidelines are up-to-date and restrict errors and fraud.”
Between 2015 and 2019, about 16,000 folks and firms in Denmark traded cryptocurrencies. Of these transactions, 67% weren’t accompanied by an correct tax submitting. In February, the Danish Tax Company stated it had collected $4.9 million from crypto buyers and reported 48 folks to its crimes unit, primarily based on a suspicion that they’d violated the nation’s tax code.