June 16, 2024

Danish tax office demanded from traders a report on transactions in cryptocurrencies for 2016-2018

The Danish tax agency Skattestyrelsen (Skat) has started sending letters to local traders asking them to providefull information about all cryptocurrency transactions for the previous three years.

In their letters Skat demanded to provide dataprofit and loss statements from 2016 to 2018 in chronological order. In addition, the tax authority was interested in the commissions for each transaction, the exchange rate at the time of the transaction, the purpose of purchasing digital currencies and the data necessary to create a cryptocurrency wallet.

Skattestyrelsen required usersConfirmed their trading activity by taking a screenshot on which the name of the trader and consent to create an account should be present. In addition, traders are required to provide bank statements for the specified period.

“Make a detailed report on all transactions withcryptocurrencies is a very difficult task. Traders typically have multiple wallets and exchange accounts to freely transfer cryptocurrencies between them. Therefore, it will be very difficult to calculate the profit for any specific transaction,” — Robin Singh, founder of the cryptocurrency startup Koinly, working in the tax field, commented on the situation.

The tax agency urges traders to taketo the stated demands with complete seriousness, adding that these are only the first steps aimed at combating tax evasion. If users do not provide all required information within a reasonable time, more stringent action will be taken against them.

The Danish Tax Office turned its attention to cryptocurrency users back in January, receiving permission to collect crypto asset trading information from three trading platforms.