On May 9, 2022, the Danish Tax Agency was granted permission by the Danish Tax Council to collect information about trades made via Danish crypto exchanges. In this article, we write about what this means and what you can expect if you have traded on a Danish virtual currency trading platform.
For a number of years, the Danish Tax Agency has focused on Danish taxpayers' reporting of taxable gains on cryptocurrency.
When it comes to cryptocurrency taxation, it is the users themselves who are responsible for reporting taxable gains. This is in contrast to trades in, for example, shares, where trading platforms have a reporting obligation to the tax authorities.
Therefore, the Danish Tax Agency has now for the second time been authorized to obtain information about trades from Danish exchanges that offer cryptocurrency trading. The Danish Tax Agency was granted permission to collect information for the first time in 2019, when the trading platforms were required to provide information for the period January 1, 2016 to December 31, 2018. This information has been used in control cases that have resulted in tax claims of approximately DKK 58 million.
The Danish Tax Agency has now been granted permission to obtain information about trades from Danish stock exchanges in the period 1 January 2019 to 31 December 2021. The permission is granted in accordance with section 62(1) and (2) of the Tax Control Act.
If you have traded cryptocurrency on a Danish trading platform, you can therefore expect the Danish Tax Agency to initiate a control case against you. This means that the Danish Tax Agency will check that you have reported your taxable gains on cryptocurrency correctly. A control case is initiated when you receive a letter from the Tax Agency requesting a number of information. If you receive a letter about a control case from the Tax Agency, you can read more about it in our article "Has the Tax Agency sent you a letter about cryptocurrency taxation?".
The Tax Council's authorization to obtain the information can be read here.
As Denmark's only specialist office within cryptocurrency, Samar Law has extensive experience in advising on cryptocurrency taxation matters. Have you received a letter from the Danish Tax Agency and are unsure what to do? Then we encourage you to contact lawyer Payam Samarghandi at payam@samarlaw.dk or mobile 60793777 for a non-binding conversation.
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