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.
SKAT (tax agency) was the former Danish Tax Authority, reorganized in 2018 after
several grave scandals. It had been the state authority under which the Danish
Treasury calculated and collected taxes and imposed charges. The authority also
undertook property valuation and settlement of debts. SKAT started operating Nov 1,
2005 and its being dissolved last year July 1, 2018.
The Danish Tax Agency is responsible for administering and enforcing tax laws
in Denmark.Danish Tax Agency has got the go signal to collect trader’s information
from local cryptocurrency exchanges to see if they are paying their dues. The three
platforms must now provide information about all purchases and sales of
cryptocurrency made by their customers during the two-year period, Monday that is
the first time the country’s Tax Council has given it access to crypto trader’s data-
information that includes trades, names and addresses, and central person
As per Yogita Khatri one of the crypto writer on Coindesk, the agency said that nearly
2,700 Danish citizens traded over 100 million Danish krone ($15.35 million) worth of
cryptos during 2015–2017 on the Finnish bitcoin exchange. Last month, the agency,
citing a study by the National Tax Board, said that there are up to 450,000 local
citizens that have considered trading in cryptocurrency, but only half of them are
aware of the tax rules. It emphasized that crypto traders must pay tax on any profits,
while losses can be claimed for the tax deduction.