Since 2013, NJORD has been working on advice within crypto currency. NJORD has therefore also led many of the published cases at the Tax Council, which we also mentioned earlier. The latest case is from January 29, 2019, when the Tax Council issued a binding answer that the FIFO principle is not the legal starting point when making a statement of gains or losses on Bitcoins and most other crypto currencies.
As I have mentioned earlier, profits from the sale of Bitcoins and most other crypto currencies are legal starting points tax-free. The Tax Council has since 2017 initiated a practice, after which Bitcoins are often regarded as speculative objects. This has been appealed to the National Tax Tribunal and is awaiting further decision.
The new case is about the method of calculation in cases where the sale of Bitcoins is taxable. In this situation, the question arises of how the profit margin should be calculated. The decision can be found in anonymous form here . The case has been linked to tax lawyer Niels Gade-Jacobsen, who has worked with crypto currency since 2013.
If the seller alone has bought into eg Bitcoin once, the statement of profit (or loss) will not be difficult. The purchase price is deducted from the sales price, simply.
For many who have been interested in crypto - and typically only only Bitcoin, and perhaps later Ether - situation is often the case that these people have different crypto currency holdings. One often sees, for example, that there is "cold storage" or bitcoin on one wallet, and that there is one or more wallets that are only pursue other purposes, such as consumption or trading in crypto (trading). In this situation, it is very important about the profitability of sales in eg. The "trading" wallet can be kept separate from one's "cold storage" wallet.
The Tax Council came in the course of 2018 with some decisions that could create the misconception that can be separated from a cold storage stock and a trading portfolio. The consequences of such a legal situation will in fact ruin many people who have traded and have cold storage, as taxable sales will be fully taxed, whereas a loss only partially provides tax deduction on speculation.
These previous statements were clarified by the Tax Council in their decision from 2019. In the new decision, the Tax Council found that, as a starting point, an active-for-active principle applies, and that it is only in cases where partial cancellations The FIFO principle does not apply individually.
In my opinion, this point of departure is correct. It follows from the State Tax Act (which is regulated taxable and tax-free sales of Bitcoin) that calculates the losses or gains on all sales in the starting point must be "active for assets". A simplistic example can illustrate the situation: if in 2013 you bought a Bitcoin for example. $ 300, and then put it on one wallet, and then in 2017 you bought a Bitcoin for $ 10,000 and put it on another wallet. If so, sell your Bitcoin from 2017 in 2019 to USD 3,500, you will lose and you will not be taxed on a win.
In my opinion, there was a risk that the Tax Council's earlier decision could lead to such a "legal situation" de facto becoming the legal reality if the Tax Council had not been established that the starting point is thus an active-for-active principle. .
This is why the Tax Council has now clarified the calculation method for Bitcoins and other crypto currency.
[button title = "Read more news here" link = "http://jurainfo.dk/juridiske-nyheder/" target = "_ blank" color = "# 7b2343" font_color = "# fff"]
Gå ikke glip af vigtig juridisk viden - Tilmeld dig vores gratis nyhedsservice
her →
Har du spørgsmål til dette indlæg, er du mere end velkommen til at
kontakte mig.
