The Danish Tax Authority will amend the current Tax Code of the country to reflect the use of cryptoassets and prevent tax evasion.
Danish Tax Minister Morten Bødskov said that between 2015 and 2019, the Danish Tax Service identified about 16,000 individuals and legal entities involved in cryptocurrency trading. However, two thirds of the total number of transactions made by these persons during the specified time were not reflected in tax returns.
Bedskov said that the Danish Tax Code was already outdated – the current tax laws were adopted back in 1922. Therefore, the “laws of a century ago” do not provide for the use of new financial instruments, including cryptocurrencies. The minister said it was necessary to amend the tax legislation of the country to ensure its relevance, “respond” to problems related to digital assets, and also reduce the incidence of fraud. Bedskov called the cryptocurrency industry a good reason to revise and adjust the existing rules.
Given the large number of non-professional investors, tax laws should be extremely clear and transparent to avoid possible misunderstandings and errors in tax calculations. At the same time, Bedskov stressed that amendments to the legislation will not happen “overnight.” The corresponding bill will be presented only by the middle of 2023, so it may take several years for the Danish Tax Code to “adapt” to the new realities of the financial market.
The tax authorities of different countries have repeatedly urged traders to report the profit and loss from cryptocurrency transactions. However, South Korea is taking a tougher approach – confiscating crypto assets for tax evasion. So, in April, the tax authorities of Seoul seized cryptocurrencies from individuals and companies in the total amount of 25 billion won ($ 22 million).
