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30188
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Market Cap:
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Fear & Greed:
74 / 100
Bitcoin:
$ 69.125
BTC Dominance:
% 54.4
Market Cap:
$2.44 T

The Swedish Tax Authority Investigates Cryptocurrency Mining Firms for Tax Evasion

Sweden Crypto Mining

For the past three years, the Swedish tax authority has been scrutinizing 18 different data center providers in the country (third-party investigating). This was due to their association with their companies and the fact that their mining operations were cryptocurrency-related.

Instead of paying all the taxes they were required to, firms took advantage of some non-existent tax loopholes to enjoy tax benefits. According to the investigators, it was hard to detect who exactly was using data center resources and for what motivation. It was difficult to separate actual business operations from the overall connection between art and commerce.

On multiple occasions, the crypto mining data centers reported or intentionally kept information that differed from the true state of affairs. These factors allowed them to unfairly benefit from the tax exemption and even underpay the taxes they owed.

Crypto mining is also giving rise to money laundering, as there are currently no legal guidelines in this regard. Due to the fact that it was hard to establish the exact quantity of cryptocurrency produced and corresponding sales or income, it was important to have a document that could serve as proof of mining. This also includes potential tax revenues.

The judicial courts heard disputes over 10 tax rulings, but judges decided to uphold the first 8 rulings and rejected the companies’ appeals. General remarks that focus on the bulk mass of companies that, in one way or another, claimed other commercial activity as a front for crypto mining. The taxation body is seeking an additional 990 million SEK ($91 million) in retroactive taxes and sanctions from the 18 companies under investigation.

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