Almost 99.5% of crypto investors Evaded tax in 2022

Almost 99.5% of crypto investors Evaded tax in 2022

Study claims that highest percentage of tax paid on crypto currencies were from Finland and Australia while super powers like Japan and USA are in the 7th and 10th position respectively.

According to the newv report published by Swidish crypto firm Divly it is claimed that only 0.53% of crypto investors globally paid tax on their crypto in 2022 ,however tax experts cast doubts on the figures and methodology.

The Divly report published on 5th April came up with the report after analysing the relationship between the no of people who declare cryptocurrency on their tax returns and the search volume of crypto tax related keywords in various countries, it also used the no of crypto holders in each countries according to Statista`s Global Cryptocurrency report in its calculation.

The report claims that Finland has highest percentage of crypto investors who paid their taxes on crypto in 2022 with whooping 4.09%,followed by Australia with 3.65% and at the 3rd place is Austria with only 2.75% tax payers.

Japan ranked 7th in the list with 2.18% while The United States of America ranked 10th on the list with only 1.62% of its crypto users paying taxes on crypto.

Among the lowest tax paying nations on crypto investments are India,Indonesia and Philippines with the lowest rate of about 0.07%,0.04% and 0.03% respectively.

Since the publication of the report by Swedish firm Divly certain questions were raised on the methodology used in finding out the report, experts claim that the search volume of crypto tax related key word may not be the best criteria to decide no of tax payers as not every one who pay crypto tax searches for crypto tax-related information in internet.

Additionally it doubted there could be further bias towards countries with greater internet accessibility and more accurate search volume data.

Renown Chartered accountant Greg Valles,a board member of Blockchain Australia also said that the would not be able to say conclusively the methodology used is 100% accurate. 

Valles further added that as the government technology gets more advanced and specialised, it will become easier to detect anyone not complying and warned that those who fail to report their crypto profits now ,risk it catching up with them in future.

Danny Talwar ,global head of crypto  tax software Koinly  emphasized that the risk of non-compliance for crypto is comparatively higher than other classes,tax authorities in many countries have processes in place to obtain data from crypto exchanges and if this happens then tax evasion in crypto currency will decrease substantially.

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