The Tax Administration is now stepping up its efforts against unreported cryptocurrencies. It believes that several hundred thousand Norwegians have not reported cryptocurrency to the authorities.
“New figures show that there are still many people who do not report cryptocurrency in their tax returns. We will, therefore, be following up in 2022 with intensified efforts,” division director Odd Woxholt in the Tax Administration noted in a press release.
More and more Norwegians have chosen to invest in cryptocurrency in recent years.
In 2020, 13,846 people in Norway reported NOK 951 million in income from cryptocurrency and NOK 7.5 billion in cryptocurrency assets. That is an increase from the previous year, but the Tax Administration believes that the real figures are far higher than what has been reported.
Billions in cryptocurrencies
“Even though we see a marked increase in percentage, we are not naive. There are far more people who do not report than those who report (cryptocurrency) in a correct manner. Therefore, we will now sharpen our efforts against those who hide their income and fortunes derived from cryptocurrency,” Woxholt said.
The tax authorities have identified between 60,000 and 70,000 owners of cryptocurrencies, but the real number in Norway is estimated to be around 300,000 people. The tax authorities say that it is difficult to state the value of income and wealth these owners possess, but that it is reasonable to assume that it is tens of billions of kroner.
“Most people want to follow the rules”
The Tax Administration has its own expert group that works with cryptocurrencies. The group is now being staffed, and its task is to increase compliance among those who own various forms of cryptocurrencies.
“Much of the discrepancy is probably due to the fact that some crypto owners have not familiarized themselves well enough with the regulations regarding taxes on cryptocurrencies. Our experience is that most people want to follow laws and regulations, and we want to help those who invest in crypto to do it right,” Woxholt said.
He noted that it is the individual’s responsibility to report their cryptocurrencies in the tax return.
“Those who do not state values for taxation risk paying additional tax. We report serious cases to the police,” Woxholt added.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance
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