The Tax Minister of Denmark wants to change the existing tax law of the country to respond to the challenges posed by crypto. A report from Berlingske Tidende, a local media outlet revealed that the Danish Tax Agency has identified that a significant number of individuals and companies have been involved in crypto trading between 2015 and 2019.
Denmark to Alter Tax Law for Crypto
Morten Bødskov, the Tax Minister of the country addressed the transactions executed between 2015 and 2019 and said:
“As many as two-thirds of all transactions executed within this period of time have not been properly reported in tax filings.”
In addition to this, Morten revealed that the current laws were implemented back in the year 1992 and hence, the tax code is outdated. Back in 1992, no one could have possibly imagined the advent of new financial contraptions such as cryptocurrency.
The tax minister clarified the aim and said:
“The goal is to ensure that our rules are up-to-date and limit errors and fraud. The crypto space is a good example of such an area.”
Danish Tax Law Council on Transparency of Laws
In accordance with the Danish Tax Law Council, the laws should be transparent and clear and no room should be left for misunderstandings and errors in the evaluation of tax.
Talking about the Danish Tax Law Council is an independent committee that is all set to revisit the existing rules and regulations because of numerous non-professional investors.
In addition to this, it should be noted that in order to make changes, the council would be required to submit a draft proposal for legislative alterations by mid-2023.
Hence, it can be said that it will take some years before the tax rules in Denmark are altered to tax capital gains and losses on crypto trades that are executed on exchanges.
