According to the Tax Agency in Sweden, several cryptocurrency companies gave false information about their businesses to avoid paying taxes in 2020 and 2023. After four years of misappropriations were discovered by official investigations, cryptocurrency miners in Sweden owe over $90 million in taxes.
21 Cryptocurrency Mining Companies Investigated By The Tax Agency In Sweden
Between 2020 and 2023, 21 cryptocurrency mining companies were the subject of investigations by the Swedish Tax Agency, Skatteverket. According to the study, to qualify for tax breaks, eighteen cryptocurrency mining companies submitted “misleading or incomplete” information. The government claims that several cryptocurrency companies gave false information about their businesses to avoid having to pay value-added tax, or VAT, on taxable operations. Some managed to evade paying income taxes on mining profits or import taxes on mining equipment. The Swedish Tax Agency’s remark looked like this when translated roughly: “The approach outlined results in the improper payment of input VAT, unpaid output VAT, and unreported cryptocurrency assets, which cause tax to vanish from the nation.”
The tax authorities want the cryptocurrency mining companies to pay them a total of over 990 million Swedish krona, or $90 million. This comprises 932 million krona ($85.4 million) in outstanding VAT as well as around 57.9 million krona ($5.3 million) in tax surcharges. The administrative court supported the appeals of two mining companies and denied the remaining ones, even though the cryptocurrency mining corporations filed an appeal against the $90 million demand from the Swedish Tax Agency. “The amounts mentioned above have been modified in light of the verdicts.”
