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Norway Attempts To Tax BTC Profits and Fails

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Norway is one of many countries around Europe and the world in general wrestling with taxes owed by cryptocurrency miners. There are several significant BTC mining operations in the Scandinavian nation. Norway is concerned that they are not paying their fair share of the national tax burden.

The two miners in question are Roy Arne Olsen and Philip Eriksen. The pair have reported total BTC holdings exceeding $218,000. Yet between them they paid a mere $8,750 in taxes to Norway. Norwegian tax rates are far higher than in liberalized tax regime countries like the U.S. and the U.K. Clearly the Norwegians have reason to be concerned.

Bitcoin Miners Avoiding Taxes?

The two Nordic investors spoke with the press from Tromso, one of the important Norwegian cities. Their holdings as recently as December of 2017 had soared in value to $680,000. This historical Bitcoin high made them well to do men for a brief time.

Once the tax year 2017 finished, Norway started pondering. How would it get its fair share of the windfall investors were making from digital assets? The Norwegians answered this by counting BTC as an investable asset much like equity shares.

It does not cause investors in the country to pay much in taxes. On average, these businessmen are giving under five percent of their total earnings in taxes. Non-related Norwegian sectors must pay up a larger share of taxes even though their activities are much less profitable.

The Norwegian tax authorities are especially worried there is no third party reporting to the revenue agencies when transactions occur. It means that miners and investors can quietly underreport or not report at all when they turn profits. They fear that the miners and investors are either deliberately or ignorantly misreporting. They are probably correct.

Europe Lacks a Regional Cryptocurrency Regulation or Coordinated Policy

Europe is still lacking an official joint cryptocurrency regulator. Their policies on the issue are fragmented to the 27 EU nations plus Great Britain, Norway, Switzerland, Iceland, and Liechtenstein. Spain is attempting to control the market more effectively. Malta on the other hand has become among the friendliest regimes to digital assets and blockchain technology. Complicating matters more is that Norway is not even a European Union member. It can set its own rules.

 

 

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