Norway: crypton miners see millions of profits, the tax office sends a reminder


The Norwegian tax authorities urged the diligence in reporting the profits of the cryptocurrency after the news emerged that two miners paid only 74,000 crowns ($ 8750) of taxes on declared holdings of 34 BTCs ($ 218,000).

Much Bitcoin, Small (Heritage) Wealth

As local news Dagens Næringsliv reports on 20 August, Philip Eriksen and Roy Arne Olsen accumulated funds from a now deceased mining operation for a long period.

The couple first made their successes known in interviews with the local press in their hometown of Tromso in late 2017, when the value of their holdings reached around $ 680,000. "Having millions unrealized in wealth of cryptocurrencies after two years is a fantastic feeling," Olsen said at the time.

Now, after the height of the fiscal year, the Norwegian Bitcoin treatment as a resource similar to the shares led to limited taxing obligations only for Olsen and Eriksen.

Fiscal agent: "often hurt" encrypted signal [19659003] Speaking with Dagens Næringsliv Astrid M. Dugstad Tveter of the Norwegian Tax Administration pointed out that it was still up to individuals to report profits or losses in cryptocurrency. He said:

The person who bought, sold, extracted or has values ​​placed in virtual currency, like bitcoin, must report this in the tax report. A challenge with cryptocurrency is that the Fiscal Administration is not automatically reported by a third party, as with other types of basic data. The experience is that it is often misguided, either deliberately or unconsciously, with such information.

Europe remains a patchwork environment for cryptocurrency taxation, despite the efforts of national regulatory authorities to cope with increasing adoption.

Despite the scale of the effort, Dugstad Tveter added that there are still ways and means of ensuring that the advantages and disadvantages reported correspond to reality.

"The tax office generally has access to information from more sources than the information we receive from tax payers through the tax report and uses different methods of control, both in terms of gathering values, and to check whether the contributors have provided correct and complete information, "he warned.

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