Denmark’s century-old tax code to get crypto facelift

Denmark’s Ministry of Taxation will examine its nearly century-old tax code in an effort to address challenges raised by cryptocurrency investments.

Denmark’s century-old tax code to get crypto facelift

According to the report by Bloomberg, the country’s Ministry of Taxation has discovered two-thirds of local crypto transactions aren’t properly taxed.

The ministry cites a heightened risk of fraud and an increased number of errors in tax filings as the main catalyst for cracking down on crypto tax evasion.

According to the report, Denmark will identify specific challenges to tax authorities that the nascent asset class brings and then decide on what to change in the tax legislation.

Morten Bodskov, Denmark tax minister, said his department’s goal was to remain vigilant and ensure that our rules are up-to-date and limit errors and fraud.

Back in 2019, Denmark’s tax authority, the Skattestyrelsen, send letters to suspected tax dodgers asking them to amend previous returns based on their dealings in crypto and warned them of penalties for non-compliance.