Tax Authorities In Norway Remind Crypto Investors to Pay Taxes on Their Profits
Since cryptocurrency has become somewhat of a form of income in many places, it should come as no surprise that taxation has become a factor in tracking the funds made from it. Norway is one such country that requires profiteers to pay out, and the recent payment of two miners, amounting to 74,000 kronor on 34 BTC in holding, caused them to urge others to do the same.
One local news outlet in Norway, Dagens Næringsliv, the pair earned the funds through a mining operation over a long period of time. The mining operation has since been shut down, but both parties, Philip Eriksen and Roy Arne Olsen, went public about their success last year in Tromso. At that time, they would manage to amass $680,000 already. Regarding this number, Olsen said, “Having unrealized millions in cryptocurrency wealth in after two years is a fantastic feeling.”
As wonderful as this is, Norway has decided to liken the treatment of Bitcoin to the same as holding stocks, which means it is time for many investors to pay up. These records are entirely up to the investor to maintain, even though most of the participating payers do not understand the correct way to calculate it. Astrid M. Dugstad Tveter, who works with the Norwegian Tax Administration, had this to say on the topic:
“The person who has bought, sold, mined or has values placed in virtual currency, such as bitcoin, must report this in the tax report. A challenge with cryptocurrency is that the Tax Administration does not get this automatically reported by a third party, as with other types of basic data. The experience is that it is often done wrong, both deliberately and subconsciously, with such information.”
Even though many national regulators have been working to make this process simple and easy, but Europe is largely still trying to make these laws known. Dugstad Tveter has said that there are many ways to ensure that every profit and loss is reported, even though the adoption of these tax laws is substantial. Still, she warns the public,
“The tax office generally has access to information from more sources than the information we receive from taxpayers through the tax report and uses different control methods, both in terms of tracking up values and to check whether taxpayers have provided correct and complete information.”