Spanish Tax Agency Puts Crypto in Its Sights for the Upcoming Tax Season – The Spanish tax agency is planning a cryptocurrency approach for the upcoming tax collection season. On February 27, the agency released various rules aimed at increasing tax collection related to the usage of cryptocurrencies in digital payments, as well as curbing illegal activities.
The agency claims in the document that “this year, the intention of the collection area to promote actions to locate crypto assets subject to seizure is underlined.” This could imply that tax debtors will be followed and their cryptocurrencies taken in order to settle their debts. Nevertheless, the document does not go into depth on how the agency intends to accomplish this or the tools that will be used.
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In the same way, the institution indicates that it will develop “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.” These new initiatives are intended to increase the Spanish tax agency’s surveillance over crypto assets, with the goal of increasing collection.
Several tax authorities throughout the world are including digital wallets and cryptocurrency into their investigation and seizure procedures. For example, the Argentine tax authorities has been authorized to seize funds from digital wallets since February 2022, when the organization included this popular structure as one of the assets subject to confiscation.
Yet, when it comes to targeting the rising cryptocurrency investing population, the Spanish tax agency has typically been unsuccessful. According to reports, it only managed to notify 5.3% of the country’s cryptocurrency investors of their obligation to pay crypto taxes in 2022.
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This means that the IRS did not contact more than 4 million cryptocurrency investors about their cryptocurrency tax obligations. According to local observers, several of these crypto holders are unaware that they must report their assets.
