Swedish Crypto Miners Face $90M Tax Bill Post Skatteverket Investigation
Summary:
Cryptocurrency mining companies in Sweden were slammed with a tax bill over $90 million following an investigation by the national tax agency, Skatteverket. The probe exposed tax misappropriations from 18 out of 21 scrutinized firms between 2020 and 2023, leading to a combined owed amount of 990 million Swedish krona. Most firms lost their appeals against the tax demands. Moreover, crypto mining company Hive Digital Technologies recently expanded its footprint in Sweden, establishing a commitment to renewable energy use.
Crypto mining companies in Sweden have been hit with a tax bill exceeding $90 million following an investigation by the Skatteverket, the national tax agency. The inspections, carried out between 2020 and 2023, scrutinized 21 cryptocurrency mining corporations, and uncovered erroneous or incomplete filings by 18 of these that had taken advantage of tax incentives. The Skatteverket stated that certain firms utilized inaccurate operation descriptions to circumvent paying Value Added Taxes (VAT), while others managed to evade import taxes on mining machinery or income tax on profits from mining. In its statement, the agency lamented the drain of taxes away from the nation due to these manipulations. As a result, these implicated miners now owe the tax department roughly 990 million Swedish krona ($90 million), inclusive of unpaid VAT of 932 million SEK ($85.4 million) and tax penalties totalling nearly 57.9 million SEK ($5.3 million). Despite the miners contesting the $90 million charge from the Skatteverket, the majority of their appeals were dismissed by the court, although two were upheld. In related news, Hive Digital Technologies, a crypto mining business, recently acquired a commercial property and data centre in Boden, Sweden, expressing an intent to expand locally and demonstrate its ecological commitment with a new "green" energy-run data centre. This facility will also accommodate its forthcoming ASIC servers, boosting its Bitcoin production. Hive, which operates data centres in Canada, Sweden and Iceland, endorses the use of renewable energy for cloud-based Bitcoin mining.
Published At
4/18/2024 11:10:25 AM
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