The Spanish tax agency is stepping up its efforts to ensure cryptocurrency is included in its 2021 tax collection plans. This includes increasing the number of voluntary tax applications and intensifying the investigation into digital payments involving crypto. It could also lead to the seizure of any crypto assets associated with criminal activity or tax debts.
Tax Authority Enhances Crypto Tax Oversight
The Spanish Tax agency is preparing for the 2021 tax season by implementing new guidelines to make sure cryptocurrency payments are included in their collections. On Feb. 27, the agency released a document outlining its plans.
According to the document, the agency has declared that this year it will “promote actions to locate crypto assets subject to seizure.” This could lead to tax debtors being tracked down and having their cryptocurrency taken to pay off any dues. However, the document does not provide any more details on the exact measures being taken or the tools that will be used.
The institution also indicated that it would also be “developing an investigation plan associated with the use of cryptocurrencies in the field of the digital economy in order to detect assets whose origin may be linked to criminal activities.”
Crypto In the Crosshairs
The Spanish Tax agency is ramping up its efforts to keep a closer eye on crypto assets with the goal of increasing tax collection.
Other tax agencies around the world are using digital wallets and cryptocurrency as part of their investigation and seizure processes. For example, Argentina’s tax authority has been able to confiscate digital wallet funds since 2009. As part of the assets that are subject to seizure, this structure was added to the organization in February 2022.
However, Spanish Tax agencies have struggled to target the growing crypto investment crowd in the past. Reports indicate that only 5.3% of cryptocurrency investors in the country have been informed about the obligation of paying taxes on their profits. This year, the agency is expanding its scope and will be able to reach more cryptocurrency users.
The Spanish tax agency has now included crypto as part of its new guidelines for this year’s upcoming tax collection season. It has increased the number of voluntary tax applications and intensified the investigation into cryptocurrency in digital payments. The agency may also seize cryptocurrency that is associated with criminal activity or tax debts.
The Spanish Tax Agency is gearing up for crypto tax season, with the agency planning to levy taxes on crypto holdings by 2022.
This means it will be contacting over 4 million crypto holders to inform them of their tax obligations. Local analysts say that some of these investors are not even aware they must declare their crypto assets.
What do you think of the Spanish Tax Agency’s move? Leave your comments below.
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