November 27, 2022

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

Danish tax agency Skattestyrelsen (Skat) has begun sending out letters to local traders asking them to provide full information about all cryptocurrency transactions for the previous three years.

In her letters Skat demanded to provide dataProfit and loss statement from 2016 to 2018 in chronological order. In addition, the tax authority became interested in the commissions for each transaction, the exchange rate at the time of the transaction, the goals of acquiring 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. Typically, traders have several wallets and accounts on the exchange in order to freely transfer cryptocurrencies between them. Therefore, it will be very difficult to calculate the profit for any particular transaction, ”commented Robin Singh, founder of the tax-cryptocurrency startup Koinly, who commented on the situation.

Tax agency encourages traders to treatto the stated requirements with complete seriousness, adding that these are only the first steps aimed at combating tax evasion. If users do not provide all the necessary information within a reasonable time, more stringent measures will be taken against them.

The Danish Tax Authority drew attention to cryptocurrency users in January, having received permission to collect information on crypto assets trading from three trading platforms.