• The Spanish tax agency has included crypto as part of its new guidelines for this year’s upcoming tax collection season.
• The agency will potentiate the investigation of cryptocurrency in digital payments, including potentially seizing cryptocurrency associated with tax debts and criminal activity.
• Reports indicate that it only managed to warn 5.3% of the cryptocurrency investors in the country about their duty of paying crypto taxes in 2022.
Spanish Tax Agency Puts Crypto In Its Sights
The Spanish Tax Agency (AEAT) has announced new guidelines that include cryptocurrency for this year’s upcoming tax collection season. This move is intended to boost channels for voluntary tax applications, as well as investigate and seize any cryptocurrency associated with criminal activity or unpaid taxes.
Increased Crypto Tax Oversight
In order to increase collection of taxes related to the use of cryptocurrencies in digital payments, AEAT declared its intention to „locate crypto assets subject to seizure“. While details on how this will be done are not yet available, it is clear that debtors may have their cryptocurrency seized if they fail to pay their taxes on time. Additionally, an investigation plan will be developed „in order to detect assets whose origin may be linked to criminal activities.“
Crypto In The Crosshairs Worldwide
While Spain’s efforts are more focussed on increasing taxation and curbing criminal activity than other countries, Argentine authorities have already been able to confiscate funds from digital wallets since February 2022 by including them as part of susceptible assets for seizure.
Poor Success Rate For Crypto Warning
Unfortunately, reports indicate that AEAT only managed to warn 5.3% of the country’s cryptocurrency investors about their duty of paying crypto taxes in 2022 – leaving a staggering 4 million unnotified about their obligations when it comes to declaring these assets on their taxes.
The Spanish Tax Agency is aiming at improving their efforts when it comes to taxing cryptocurrencies and cracking down on crime related activities – especially those involving fraudulent use of digital currencies such as Bitcoin and Ethereum. However, more needs to be done in order educate citizens regarding their responsibilities when investing and trading cryptocurrencies in the future