According to a press release, the traders used an undisclosed Finnish exchange to collectively purchase and sell some $15.65 million worth of bitcoin (102.7 million kronor) between 2015 and 2017.
A handful of these investors traded amounts between $1,105 and $110,450 (10,000 to 1,000,000 kronor), while the overwhelming majority traded an amount equal to or less than $1,105.
Under the Denmark’s 1903 Tax Act, Bitcoin is considered as a taxable asset and traders are required to report their earnings or losses.
According to the Tax Act, Bitcoin traders are subject to a whooping 53% capital gain tax hit, which probably explains why a lot of Bitcoin traders do not report their earnings.
This is quite similar to the news with Coinbase in 2017, where the US government was requesting financial data from Coinbase’s users.
In 2014, the U.S. IRS declared that bitcoin was a taxable property that is subject to capital gains tax.
This might mean big trouble and hefty fines for those who traded a good amount of Bitcoin during those two years and did not report their capital gains.
“Right now we are identifying the individual citizens. If something does not match, we will contact them and ask for more information,” SKAT tax director Karin Bergen said in a statement.
This only applies to trades that happened within the exchange and does not consider the ones who have made profit from mining and other type of crypto investing on other platforms as well.