Danish tax authorities will soon be going after cryptocurrency traders in the country and beyond. The plan is to collect data from local bitcoin exchanges in order to verify if citizens who have traded digital assets have paid the right taxes. Information about foreign citizens and entities will be shared with other countries.
Also read: 5 Crypto Exchanges Have Been Licensed in Gibraltar Since Regulation
Tax Agency Authorized to Gather Data From Three Danish Exchanges
Skattestyrelsen, the Danish Tax Agency, announced it has been authorized by the country’s Tax Council, Skatterådet, to obtain information about cryptocurrency trade conducted on three Danish exchanges between Jan. 1, 2016 and Dec. 31, 2018. The authority noted that it’s the first time it will access this kind of data. Karin Bergen, the agency’s director responsible for personal income tax collection, said:
With the permission of the Danish Tax Council, we will for the first time gain access to the trades made via Danish exchanges. This gives us new opportunities with respect to exerting control in the field.
The three platforms must now provide information about all purchases and sales of cryptocurrency made by their customers during the two-year period. They will be obliged to include identification information such as names, addresses, and CPR numbers, the personal ID numbers issued by the Danish Civil Registration System.
The decision to permit the Danish Tax Agency to collect the data was taken at the last meeting of the Tax Council in December. It followed news that the agency has been informed by Finland’s tax authorities about Danish citizens trading cryptocurrencies on a Finnish bitcoin exchange. The Danish tax body also plans to share information about crypto transactions made by foreign citizens and companies in Denmark with tax authorities in the respective countries.
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