According to reports, the Danish Ministry of Taxation is considering revising the country’s tax laws to deal with the challenges posed by cryptocurrencies. The Danish tax authority is worried about the rising risk of fraud. Extensive filing errors involving cryptocurrencies.
Denmark will revise tax law to handle cryptocurrency
According to a Bloomberg report on Tuesday, Denmark is considering revising its tax laws to deal with cryptocurrencies after discovering that two-thirds of bitcoin and other cryptocurrency transactions are not properly taxed.
The Danish Ministry of Taxation explained that the country’s existing tax laws are not sufficient to deal with the challenges posed by crypto assets. In a statement on Tuesday, the authorities stated that the current tax law “dates back to 1922 and therefore does not take financial cryptocurrencies into account.” The ministry cited the increased risk of fraud and widespread tax reporting errors involving crypto transactions. .
Denmark will determine the specific challenges that cryptocurrencies pose to taxation, and then decide what changes to make in the legislation.
The Danish tax minister, Morten Bodskov, explained that the goal is to “be vigilant and ensure that our rules are up to date and limit errors and fraud.”
The publication pointed out that between 2015 and 2019, approximately 16,000 people and companies in the country conducted cryptocurrency transactions, but 67% of these transactions were not accurately reported. In February of this year, the Danish tax agency Skattestyrelsen stated that it had collected $4.9 million from cryptocurrency investors and reported to its crime department 48 people suspected of violating the country’s tax laws.
According to reports, in December 2019, Skattestyrelsen issued a warning letter to 20,000 cryptocurrency owners, requesting a full breakdown of all their transactions and asking them to fix all past reports.
Last month, Lars Rohde, Governor of the Danish Central Bank, stated that cryptocurrencies currently pose no threat to the central bank.
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