The Finnish government has revealed several taxpayers who are taxpayers for their Bitcoin- related income. The Tax Administration argues that they have different ways of linking information and identifying people who are taxpayers for their cryptographic income, which is now more than ten times higher than last year.
Most Finns have not paid taxes on the profits associated with cryptographic currencies
Kauppalehti reported last week that most Finns have not reported to the Tax Administration the sale of the previous year’s cryptographic currencies. The news source added that the Finnish gains from cryptographic currencies this year are more than ten times higher than last year.
Timo Puiro, the spokesman for the tax administration business taxation unit, says:
Most people have failed to report their Bitcoin-related income, which we have found when comparing the information we collect from tax information … The Tax Administration has the right to many data, such as payment information, and we have multiple ways to combine information and identify people.
Metropolitan.fi explained that the Tax Administration has access to banking information and other information that enables people to identify themselves. By comparing money transfers, it is obvious that most people have not reported the returns of virtual currencies.
Finland, which is the home country of cold and low-cost nuclear power, has not alienated Bitcoin mining. In Finland, both Bitfury and Kncminer, which have ceased operations, have been active in the mining industry. Today, there are also many smaller players in the field. There are also other established crypt companies, such as Localbitcoins, and the leading Bitcoin broker, Prasos, in the Nordic countries.
The tax administration has a 30 million euro stake
This is not the first time Puiro talks about the darker Finnish income. In December last year, he said the government has analyzed Bitcoin wallets for this purpose.
”We have been analyzing over 10,000 Bitcoin wallets for several years, and in over 500 cases we have found a low income tax that would have been taxed. He stressed at the time that the Tax Administration has acknowledged Bitcoin as one of the high-risk priorities and has been prepared to steer resources to ensure that nothing is missed, ”Bloomberg reports.
In addition, Puiro argued that in Bitcoin-related analyzes, Finland is in a leading position, and we have consulted with the authorities of many other countries. ”
Although only 500 people were observed in December last year, Kauppalehti cited the Tax Administration when it revealed that 3,300 people had been identified over the last week as a taxpayer for income related to cryptographic currencies.
The total sales gain of the recognized 3 300 people is approximately EUR 100 million, so the taxpayers’ share of the pot is about EUR 30 million.
”Bitcoin profits are taxed in Finland as capital income … They are treated as dividends, rental income or similar income,” explained Metropolitan.fi. ”In Finland, the tax rate on capital income is 30% (in 2018) of less than EUR 30,000 and 34% of the surplus”, the publication added.
Puiro also said last week that he hopes that those who have earned a profit on cryptosystems would declare income to the Tax Administration voluntarily. He emphasized that if the taxpayer ignores incoming revenue for cryptographic currencies, the tax evasion criteria may be fulfilled.
What do you think about Finnish methods to identify taxpayer retailers?