Crypto mining firms are facing $90 million substantial tax bill in Sweden

[Cryptocrit]

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8jS-uuXF_ePqPI720QZ76Y_VkmMeulHJxPsgM-OrEqOgx3gt2HRpZWmFNnt7xcLPw6SNw6ZW1UFpM0RWTYu_oV95TvUBZIUU5d1ZIbzlbQDM2ECg8d_FdMjquIGOVEAslyaVEqVq62aqUPMAzGnPSlLYWe106oXh_vVLDjdbFnEcSujgTBvcY6VrQ0i_L/w640-h640/Screenshot_16.jpg

In Sweden, a significant development has occurred in the cryptocurrency mining sector. 21 Crypto mining firms are facing a substantial tax bill totaling $90 million (approximately 900 million SEK) following a meticulous audit by the Swedish Tax Agency. This audit scrutinized the tax reporting practices of crypto mining businesses, potentially uncovering discrepancies in how income and expenses have been declared.

The reasons behind this hefty tax bill could be multifaceted. Firstly, the Swedish Tax Agency likely views crypto mining as a business activity, which would make earnings from mining subject to corporate income tax. Additionally, there may have been instances where miners underreported their earnings or failed to declare them altogether. Another factor could be the application of Value Added Tax (VAT) on the electricity used for mining operations, which adds another layer of financial obligation for the miners.

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https://www.cryptocrit.xyz/2024/04/Crypto-tax-in-Sweden.html

[DiMarxist]

I see this kind things from the fault of the government because of they placed policies that regulate new and old firms in the country then companies would not violate the law and if any company didn't obey the law or policies then stop the firm to operate in the country. And with the fear of that they would comply. With that there will be no disobedience of tax payments.
If any cryptocurrency company wants to mine, they have to pay all the necessary tax in the country so that when they start they would be no disturbance but whereby the government and it agencies are corrupt then this always what happened and at the end they blamed the company and taxed it with heavy taxation.

[crwth]

I'm not sure how will this hold up with the Bitcoin community in Sweden but I'm more concerned about the overall effect. Is the mining operations in Sweden a big percentage? I'm curious about how they will be able to react to this or something.

I have searched for this and it's around 0.84% of the hash rate.^[1]

Not that big IMO.

[1] - https://hashrateindex.com/blog/bitcoin-mining-around-the-world-sweden/