Association believes crypto currency can lead to tax evasion

bitcoinA man watches a screen showing the prices of bitcoin at a virtual currency exchange office in Seoul, South Korea, Tuesday, Jan. 16, 2018. Prices of bitcoin and other digital currencies have skidded after South Korea's top financial policymaker said a crackdown on trading of crypto currencies was still possible. (AP Photo/Ahn Young-joon)

Norway’s Bitcoin and Block Chains Association believes several Norwegians who own crypto currency may end up cheating on the tax due to the cumbersome regulations.

Norwegians in the block-chain environment that NRK has talked with take the the view that it is too complicated to follow up the tax authorities’ requirements for documentation of investments in cryptographic currencies.

– Especially for those who have made repeated purchases, purchases and sales between multiple currencies and those who use crypto currency to buy goods. They may have difficulty documenting the transactions, ” says Stephan Nilsson in Norway’s Bitcoin and Blockchain Association.

According to the consultancy company Menon Economics, about 200,000 Norwegians now sit on bitcoin and other crypto currencies.

“We want to get in touch with the tax administration and the Danish Financial Supervisory Authority to discuss how we can better prepare for the correct solution for cryptovarians,” says Nilsson.

Anders Torkildsen Nytrøen in the tax office points out that shares and crypto currencies are two different investments.

“Despite the fact that both are under the definition of capital objects, there are separate tax rules,” says Nytrøen, adding that it is working to simplify and adapt the reporting.

“We believe that most people will be able to manage this, but we see that it may be challenging as it is new.


© NTB Scanpix / Norway Today