The Finnish tax authorities handed over information about 2,700 crypto traders to the Danish tax authorities. According to the press release, they used the Finnish exchange to collectively buy and sell approximately $15.65 million worth of Bitcoin. Some investors traded amounts ranging from $1,105 to $110,450. Most traded in smaller amounts and very few traded in amounts greater than $110,450.
“Right now we are identifying these people. If anything doesn't match, we will contact them and ask for more information," SKAT tax director Karin Bergen said in a statement.
Bitcoin is a taxable asset under the Danish Tax Act of 1903, which requires taxes to be paid on any goods purchased and resold for a profit, and is subject to a capital gains tax of 53%, which is significantly higher than the tax on others investment assets.
This news is reminiscent of the IRS order issued to the Coinbase exchange in 2016, which required the exchange to provide trading and personal information about 480,000 users. After a 12-month legal battle, Coinbase has won a partial victory regarding its customers' right to privacy. As a result of litigation, the original request was reduced from 480,000 to 14,000 users who traded over $20,000.
In 2014, the US IRS announced that Bitcoin is taxable property subject to capital gains taxes. In fact, any cryptocurrency trading, such as selling bitcoins for ether, is considered a taxable event, which causes discontent among all traders.
According to nasdaq.com
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