Two Bitcoin Miners in Norway Get Unwanted Spotlight After Taxable Income Filings
Two Norwegian crypto miners are being publicly scrutinized after declaring less than $20,000 USD in taxable income and also admitting to owning at least 34 BTC last year. After the 22 year old miners from the city of Harstad, Philip Eriksen and Roy Arne Olsen, made their allegations public, they entered the radar of the national media outlets.
On December 2017, the duo admitted to owning about 34 BTC, then valued at 5.5 million NOK (or $657,000 USD). After telling the local media that having more than a million in wealth was a great feeling, they reported their incomes as 105,000 NOK ($12,540 USD) and 150,000 NOK ($17,915 USD) for their 2017 taxes, which made them pay only some thousands of dollars in taxes.
The two miners have since then avoided the media and told reporters that they did no longer want the press attention. However, in a contrast with their situation last year, during which Ericksen purchased a Rolex watch and an apartment, the media is “curious” about the situation.
In another interview, Eriksen has also told the media that many crypto users do not report their actual gains with cryptos. He said that he might get additional tax if he does not report but that the government do not know has Bitcoin or not.
Cryptocurrency is a Challenge For Norwegian Administration
A spokesperson for the Norwegian Tax Administration, Astrid M. Dugstad Tveter, has affirmed that any person who bought Bitcoin or similar digital assets should report them. She did not want to comment on any specific case but emphasized that deductible debts like mortgage can be a good way to reduce the value of your net assets if you are worried about taxes.
According to her, the main challenge with cryptocurrencies for the department is that they are not automatically reported by a third party company, as it is with other types of assets, which could make the whole situation a lot easier.
However, she stated that the tax department has more information than what is received directly from the taxpayers, so the institution has the means of discovering if someone is hiding an asset or not.