The 2,700 nationals are targeted for allegedly trading Bitcoin secretly on a Finnish crypto exchange while earning profits from the trades which are taxable.
Payam Samarghandi, a Denmark lawyer and Bitcoin expert, stated that bitcoin is a taxable asset according to the 1903 Tax Act, which stated charges will be imposed when a property is purchased and resold for profits. The lawyer described that Bitcoin, in this case, is like Kählervasen, a vase where no tax is charged upon its purchase. However, if the owner sells the vase whose values have increased after five years, the owner will have to pay taxes charged upon the profits.
Upon receiving information regarding the trading on the Finnish crypto exchange, the Danish tax agency, Skattestyrelsen (SKAT), are now tracking down the traders who were involved in the unreported Bitcoin trade that took place between the years 2015 and 2017. The 2,700 Danes reportedly bought Bitcoins worth approximately 49.7 million kronor ($7.55 million) and sold 53 million kronor ($8.05 million) worth of Bitcoins.
Tax director Karin Bergen stated that this may just be the ‘tip of an iceberg’, stating that there may be more unreported crypto trades ongoing in the country, and the more knowledge they gain from different crypto parties about the crypto world and operations, the more efficient the agency can be at tracking down these transactions.
She further warned nationals that have traded on the unnamed Finish crypto exchange that they should expect news from the agency if they earned hidden profits from the exchange.
Additionally, SKAT does realize that it is difficult to categorize Bitcoin holders, as some of them sees the crypto market as a platform to earn profits while some only utilises the cryptocurrency to make purchases of other items.
It is worth mentioning that Denmark residents have separate views when it comes to cryptocurrency. There are reportedly 1,500 restaurants in the country that accepts Bitcoin via the online food portal Hungry.dk. Local bank Nordea, however, decided that they would ban its workers from owning any form of cryptocurrencies.
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