The Danish Tax Agency has been authorized by the Tax Council to obtain information on trade in cryptocurrency via three Danish crypto exchanges in the period 2016 – 2018.
On Monday, Skattestyrelsen Agency had its press release stating this is the first time the country’s Tax Council has given it access to track information from crypto traders’ data. The information includes trades, names and addresses, and central person registration (CPR) number. All data from 2 years 2016 – 2018 will be extracted from 3 unnamed crypto exchanges.
The purpose of this application which was sent to Tax Council is to “obtain information on unexecuted taxpayers ‘and companies’ virtual currency transactions.” – Karin Bergen, personal tax director at the Skattestyrelsen, also added in the announcement:
“Without going too far, I think you can say that this is a big market that we need to look into.”
Last month, according to a study by the National Tax Board, the amount of Danish citizens that have considered trading in cryptocurrency is up to 450,000. However, only half of them are aware of the tax rules. It mentioned that crypto traders must pay tax on any profits, while losses can be claimed for the tax deduction.
At the same time, Skattestyrelsen Agency also reported that nearly 2,700 Danish citizens traded over 100 million Danish krone ($15.35 million) worth of cryptos during 2 years (2015–2017) on the Finnish bitcoin exchange.
“Although it is a relatively small bitcoin exchange, the information is a very valuable source that clearly shows trends and patterns in the field.” – Bergen added