Sweden's tax authority has exposed tax irregularities in 18 <a href="https://ultramining.com/news/en/crypto-miners-shift-gears-ai-is-the-new-gold-rush/" rel="noopener noreferrer nofollow">data centers</a> involved in undisclosed cryptocurrency mining operations. The <a href="https://ultramining.com/news/en/large-scale-cryptocurrency-mining-farm-uncovered-in-dagestans-kizilyurtovsky-district/" rel="noopener noreferrer nofollow">investigation</a>, spanning three years, uncovered deliberate exploitation of tax incentives by these companies, leading to a hefty tax demand of 990 million Swedish krona ($91 million). The head of the agency's intelligence unit, Patrik Lillqvist, stated that these actions were attempts to gain unfair tax benefits, involving misleading information about their business activities, according to <a href="https://www.skatteverket.se/omoss/pressochmedia/nyheter/2024/nyheter/miningdatorhallarupptaxerasmednara1miljard.5.13948c0e18e810bfa0c2203.html" rel="noopener noreferrer nofollow">Skatteverket</a>.
The crypto mining centers often declared VAT-liable business operations to evade taxes and mask their actual cryptocurrency mining activities. This led to significant tax revenue losses through incorrect state payments and unreported crypto assets. Additionally, the tax authority has raised concerns about potential money laundering activities due to the lack of regulatory oversight on crypto mining operations.
Despite challenges in identifying the actual business conducted and the total amount of crypto mined, the authorities have made substantial progress. Ten decisions have been appealed, with the courts largely upholding the initial findings. In one revealing instance, a company misrepresented its operations as consulting and high-performance computing development, while exclusively serving a crypto mining customer.

Sweden Cracks Down on Crypto Mining Data Centers for Tax Evasion

Ultramining_Eng

Other articles published on Apr 18, 2024

Bitcoin Price Pullback Continues, Ethereum Whales Investing in New Platform Algotech (ALGT) for 1...

Revolutionizing Solana: Ore’s SOL Rewards – A Game-Changer in Tackling Congestion

Exploring Recent Challenges and Outlook in Bitcoin Market Dynamics

Dogwifhat Success Story Sparks Interest in $MEDA Presale as This Investor Looks to Make a 100x on...

Unicorn Airdrops to Over 30 Competing NFT and Memecoin Communities (18 Apr)

Cardano’s Charles Hoskinson Believes RFK Jr Is The Best Presidential Candidate

Join our free newsletter for daily crypto updates!