Spain’s tax agency issued 14,800 warning letters to cryptocurrencies trader, fines could be over $ 5,900
According to Telemadrid, the Spanish tax authority made it clear that cryptocurrencies are taxable and notices have been sent to their mail recipients.
Spanish tax authority issues 14,800 warning letters to cryptocurrencies holders
It seems that Spain is taking their tough stance towards the crypto industry. Now, Hacienda has issued 14,800 warning letters to the Spaniards under their supervision for alleged failure or the need to declare their holdings of cryptocurrencies.
The owners of the Spanish cryptocurrency should declare their earnings on tax records and if they don’t, Hacienda says they could incur a fine of more than $ 5,900. However, Hacienda made it clear that the owners of cryptocurrencies in the country are not responsible for their crypto purchases, but only responsible for profitable sales.
Experts cited by the local media explained that Spaniards should declare profitable sales activities carried out in 2020 on this occasion:
“Either because we have exchanged them to euros to another cryptocurrency or because we have used them to buy a good, a flat, or a car.”
As such, if someone bought 10 Bitcoins in 2017 worth $ 11,880 and sold it for $ 237,700 in 2020, then crypto holders would have to declare a capital gain of $ 225,800.
But the number of emails sent by Hacienda this time is much lower than the one sent in 2020. The Spanish tax agency ran a similar campaign to send notices to crypto owners in the year last year, but it targets 66,000 crypto owners.
Such a figure represents a massive increase from the 14,700 tax letters the agency sent crypto owners in 2019.
According to Ana de la Cueva, Spain’s Economy Minister, cryptocurrencies like Bitcoin carry the risk of default, since users are not protected by traditional payment systems – which are against default partners. That same month, the Spanish State Tax Administration announced instructions to reduce tax evasion on cryptocurrencies.
Read more:
- The Securities And Exchange Commission (SEC) Charged Crypto Firm LBRY With Selling Unregistered Securities
- The UK Financial Watch Dog FCA Will Now Compel All Cryptocurrency Businesses File In Financial Crime Reports And Refer To These Firms As “REP-CRIM”