Swedish Crypto Investor to Pay Close to $1 Million in Taxes After More than 10,000 Bitcoin Trades
Tax agencies in different countries are starting to control cryptocurrency traders by imposing taxes on crypto transactions. However, there are some cases that seem out of the logic.
For example, Linus Dunker, a Swedish cryptocurrency trader, received a bill for $1 million from the Swedish Tax Agency (STA). Apparently, this is not the first case in which a trader has to pay such a large sum of money after trading Bitcoin and other digital assets.
As cryptocurrencies expanded and trading activities attracted several enthusiasts, the STA has been increasingly prosecuting crypto cases. Just in 2018, the STA investigated around 400 cryptocurrency traders in the country. This is more than ten times the number of individuals investigated back in 2017.
Dunkers says that the tax demands are ‘unreasonable’ since he is being charged 300 percent of his total profits. He traded around $2.75 million between 2014 and 2016 and made a moderate profit on his trades.
Apparently, the agency contacted him back in 2016 in order to file his crypto trades under the category of capital income. Although he was doing it, in 2018 the STA said that he would have to pay 300 percent of the profit rather than just 30 percent.
This could mean that crypto traders in Sweden could soon receive similar demand notices from the regulatory and tax agency in the country. Linus Dunker believes that the STA is trying to force an appeal and set a precedent. Now, Dunker is searching for help from the crypto community and find a solution to this situation.
Other countries are also paying closer attention to traders and participants in the crypto market. However, there is no unified position among countries on how to tax crypto activities.