Last year, the Tax Administration found a total of 30 million euros in unreported virtual currency income.
Tax administration last year found a total of 30 million euros in virtual currency income that had not been declared for taxation.
Therefore, those who invested in virtual currencies had to pay approximately EUR 10 million in capital income tax, the Tax Administration says in its announcement. In addition to this, those who do not declare their income will have to pay a tax increase and late penalties. If it is a gross failure to notify, it may have criminal penalties.
A large part of those who received virtual currency income still fail to report their income to taxes, the Tax Administration estimates.
Last in 2019, 9,800 customers of the Tax Administration reported receiving virtual currency income in the previous year, i.e. in 2022. According to the Tax Administration, the amount is clearly lower than in 2021. At that time, 16,000 customers reported virtual currency income.
“When the exchange rates of virtual currencies have been low, investors have sold less of their holdings than before, or for some reason sales losses have not been reported to taxation”, tax expert of the Norwegian Tax Administration Mika Siivonen states in the announcement.
Sivonen estimates that the sum of 30 million euros of unreported virtual currency income found by the Tax Administration is “large in euro terms”. According to him, this indicates that more and more information about Finns' virtual currency transactions is constantly being obtained from virtual currency exchanges and that income control is working.
In a few years, the tax authorities of different countries will receive information related to virtual currencies automatically through international data exchange.
“In 2027, the Tax Administration will receive significantly more information about Finns' virtual currency transactions on foreign virtual currency exchanges than at present,” Siivonen says in the announcement.
Last income received in the year from the use or mining of virtual currencies must be reported with a pre-filled tax return. The deadline for the pre-filled tax return for the majority of wage earners is May 7, 14 or 21.
Taxable income is generated if you have exchanged virtual currency for euros or another official currency, have exchanged virtual currency for another virtual currency, have paid bills with virtual currency, have purchased goods or services with virtual currency or have participated in virtual currency mining.
Virtual currencies sold at a loss should also be reported to taxation for possible deductions, the Tax Administration reminds.
#Income #taxes #people #fail #declare #virtual #currency #income #taxation #taxman #worth #tens #millions #euros