Finance and Taxes | The tax authority warns: many cryptocurrency owners do not pay taxes

(Sarpsborg Arbeiderblad): Last year, 48,155 Norwegians reported that they owned cryptocurrencies.

Tax authorities fear that the numbers are much higher, and that many cryptocurrency owners simply do not know that they have to list the cryptocurrency they own on their tax returns, or try to evade taxes.

– We know that there are many more people who actually own cryptocurrencies, says tax director Nina Schanke-Vonemark in a press release.

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Cryptocurrency has no special tax rules. It is considered an asset. This means that if you buy cryptocurrency and later sell it at a profit, you must pay tax. If you sell at a loss, you are entitled to a deduction, and in any case the crypto assets must be entered in the tax return, in order for the assets to be counted. It will be true.

– Many of those who do not list cryptocurrencies tend to have small values, and have probably only experienced what it is like to buy and own cryptocurrencies. But all cryptocurrency trades must be entered in the tax return, regardless of their value, the tax director says categorically.

Cryptoassets are not something the IRS can automatically access, so it's important that you do it yourself to avoid problems later. The profit from buying and selling cryptocurrencies increased by 22 percent.

The Tax Manager also states that even if you have filed your tax return, you can still make changes, whether in this year's tax return or for previous years.

– Then you have to remember to hand it back. You can make changes three years in advance, says Shankey Funimark.

Lack of knowledge

The tax administrator does not believe that most cryptocurrency owners who do not report their gains are necessarily trying to avoid taxes.

– We believe that this may be due to the fact that some cryptocurrency owners mistakenly assume that cryptocurrencies have been pre-filled in the tax return, and did not take into account that it is they themselves who have to enter this. Our experience is that most people want to follow all laws and regulations, and we want to help those who invest in cryptocurrencies report this correctly,” she says.

Therefore they have a separate group that works specifically in this area. But some may believe that cryptocurrency is anonymous, and therefore they can avoid taxes if they do not report gains. It can cost you a lot quickly.

-You are obligated to state this in your tax return, and you bear the risk If you hide information from the Swedish Tax Agency.