This year, more people are reporting virtual assets as cryptocurrency on their tax returns than in the past. For the first time, losses are greater than profits.
In recent years, a number of measures have been implemented to encourage owners of virtual assets to list them testimony tax. Latest data shows that the number of people who provided information increased from 43 in 415 to 2021 in 48. In 150, only 2022 people reported owning virtual assets.
– Compliance is still too low. However, over time we have observed satisfactory improvement and more and more people decide to correct their previous tax returns themselves. Remember that you have the option to change your information and re-file your tax return three years after the filing deadline if you have something to correct, says Tax Director Nina Schanke Funnemark.
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Completing virtual assets on your tax return
Tax authorities are working broadly to improve compliance with regulations regarding virtual assets such as cryptocurrencies, including through guidelines and inspections. The office also wants to gain access to more information about people's transactions involving such values. In addition, the Norwegian Tax Office is working on measures to simplify reporting, including: made it easier to fill out information about these assets in your tax return. In the longer term, we hope to partially pre-fill virtual assets on the tax return.
– The tax authority must ensure that the correct tax and duty are paid on time. We have a good dialogue with the cryptocurrency industry and are committed to ensuring that those who hold virtual assets report them correctly. However, some people will not comply with them, which is why we also carry out inspections in this area. So far this year, a change in income of NOK 177 million and a change in assets of well over NOK 600 million have been approved, says Schanke Funnemark.
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Most are men
Of those who report in their tax return that they have virtual assets, 85 percent they are men. The largest percentage of those who declare that they have virtual assets are people under 30 years of age.
The Norwegian tax office noticed for the first time that losses were greater than profits. This is due, among other things, to the drop in prices in 2022 and the fact that we are observing an increased scale of fraud related to virtual assets. If you have been defrauded, you are entitled to a deduction under certain conditions. You had to really invest in the virtual assets and be able to document and prove that you ultimately lost them. It is the individual's responsibility to evaluate the application before filing their tax return.
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Source: skatteetaten
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