Danish tax requires full report from traders

The Danish tax authority, Skattestyrelsen, has begun electronically alerting cryptocurrency traders toprovide information on their trading activities.

In letters Skattestyrelsen asks recipientsClarify previous tax returns for 2016-2018 and include information on all cryptocurrency transactions in them. The tax authority considers non-compliance with this requirement as tax evasion and warns of fines.

The Danish tax agency received permission to collect data on users of three cryptocurrency exchanges earlier this year, ultimately it has 20,000 trading information.

In emails, the agency asksprovide information on profit and loss on cryptocurrency transactions for the specified period. Respondents must additionally indicate the tariffs at the time of the tender and the purpose of the transaction. Other necessary information includes screenshots of the created wallets or account, bank account statements and a statement of current cryptocurrency accounts.

Skattestyrelsen warns citizens about the launch of a campaign to combat tax evasion from cryptocurrency transactions and calls on crypto investors to “get their affairs in order.”