The values of tens of billions of kronor in cryptocurrency are not disclosed in the tax return. Tax authorities are now strengthening a group of experts that are working with cryptocurrencies to guide and control.
- New data shows that there are still many who do not report a cryptocurrency in their tax return. That is why we will continue to step up our efforts in both guidance and control in 2022, says Head of Tax Administration, Odd Woxholt.
In addition to the strengthened guidelines, we will be carrying out targeted inspections on both individuals and companies in the future, says Woxholt.
Income and assets grow
Updated details for your 2020 tax return are now ready. Compared to previous years, the results show a clear increase in the number of people who now report that they own the cryptocurrency. Reported income and assets are also growing rapidly:
- 8723 people reported in 2019 that they owned a cryptocurrency.
- In 2020, the number of people increased to 13.
- Reported revenues in 2019: NOK 298 million.
- 2020 report income: NOK 951 million.
- Assets reported in 2019: NOK 1,7 billion.
- 2020 assets reported: NOK 7,5 billion.
"It is gratifying that more and more people are declaring their income and assets," says Odd Woxholt.
- But although we see a clear percentage increase, we are not naive. There are many more people who do not disclosethan those reporting correctly. Therefore, we will now sharpen our efforts against those who conceal cryptocurrency income and fortunes, adds Woxholt.
- Tax authorities have identified 60 to 000 cryptocurrency owners.
- It is estimated that the real number in Norway is around 300.
- It is difficult to determine the value of the income and the value that the owners of cryptocurrencies possess. However, it is reasonable to assume that these are tens of billions of crowns. Thus, the value is not properly taxed.
Cryptocurrency Expert Group
The tax administration has its own group of experts that are deliberately working with cryptocurrencies. The group is now manned. The task will be to increase compliance among holders of various forms of cryptocurrency.
Most of the vulnerability is probably due to some cryptocurrency owners not being familiar enough with cryptocurrency tax laws. In our experience, most people want to comply with laws and regulations, and we want to help those who invest in cryptocurrencies get it right, says Woxholt.
- At the same time, we must admit that large amounts are being avoided. Whether it's conscious or unconscious, it's important to continue acting consistently. Those who do not declare taxable value risk additional tax. We are also reporting serious cases to the police, says Woxholt.
How to report a cryptocurrency
- You have this option for three years after the application deadline, i.e. change your information and re-submit your tax return.
- You must declare the cryptocurrency in your tax return. There is a separate information field in the new tax declaration in which you must fill in the cryptocurrency.
- If you have sold a cryptocurrency at a loss, you can get a deduction for it, but you must be able to document both the purchase value and the selling price, as well as information from cryptocurrency exchanges.
- It is important to make sure that the total result of all trades is reported as a total (profit / loss) and not just the total amount of cryptocurrency you have.
- There are now many who are working on their annual billing and may need some guidance. On Tax administration website you will receive guidance on how to determine value, report and document profits, losses, dividends and assets for cryptocurrency, says Woxholt cryptocurrencyTaxTax authorities
In the photo: Tax Administration Branch Director Odd Woxholt
Source: Skatteetaten
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