Cryptocurrency Tax Evasion in Germany
Specialized German tax attorneys advise on subsequent declaration and voluntary disclosure regarding cryptocurrencies
While in the early days of Bitcoin, hardly anyone thought about the taxation of cryptocurrencies due to a lack of legal knowledge and low prices, the matter became urgent for many since prices greatly increased in 2017. Ether, IOTA, Ripple and others were able to multiply their value, sometimes manifold.
Numerous articles have been published since then, both on the internet and in legal literature that deal with the correct taxation of profits made in cryptocurrencies - some with contradicting conclusions.
What is cryptocurrency tax fraud?
Tax evasion criminalizes the non-disclosure of tax-relevant facts or the provision of incorrect or incomplete information. Taxable profits from the sale or commercial trading of cryptocurrencies constitute such facts.
Crypto investors have to report profits
Crypto investors find themselves in the predicament that they are operating within an unclear tax environment in Germany. However, this does not relieve them of the obligation to report any taxable profits to the tax authorities. Anyone who fails to meet this obligation might be guilty of cryptocurrency tax evasion.
To cause this obligation, it is generally sufficient that the taxpayer at least considers it a possibility that his or her trading activities have created a tax liability. An exact legal classification is not required. However, the tax bases must be reported to the tax authorities.
Since the topic of taxing cryptocurrencies has already found its way into German mainstream media and regional newspapers, knowledge of tax liability can usually be assumed.
Crypto tax consulting at WINHELLER means:
- Clarification of all unclear issues
- Reconstruction of lost trade details
- Advice on the choice of FiFo or LiFo
- Timely submission of the income tax return
- Full communication with the tax office by our experts
You need support and want to avoid tax evasion? We look forward to hearing from you at +49 69 76 75 77 80 or firstname.lastname@example.org.
Obligation to disclose past transactions
However, it is not sufficient anymore if taxable persons limit themselves to the correct taxation of any income since 2017. Tax regulations include the obligation to correct tax returns for the past if the taxpayer notices errors that lead to a reduction in the tax.
Civil and criminal penalties for crypto tax evasion
Disregarding this obligation can in turn constitute cryptocurrency tax evasion or tax reduction punishable by law. In individual cases, this obligation to make subsequent declarations can cover a period of up to 14 years past the end of the calendar year in which the tax debt originated.
Anyone who is or has been active in the field of cryptocurrencies should therefore verify whether they owe taxes to the authorities. Due to the issue's high complexity, it is advisable to consult a qualified cryptocurrency and tax evasion expert. We are happy to assist you in these matters.
Your experts in cryptocurrency tax evasion in Germany
Our experienced team specializing in tax evasion with cryptocurrencies and fiscal offenses in Germany consists of
We are happy to provide you with advice and assistance, review your tax situation or defend you against allegations of crypto tax evasion by the tax authorities. The easiest way to contact us is by e-mail (email@example.com), by phone (+49 69 76 75 77 80) or via our contact form for the taxation of cryptocurrencies.
- Advice by Specialized Crypto Tax Evasion Attorneys And Tax Advisors
- Fast Appointments
- Nationwide Representation
- Many Years of Experience With Financial And Tax Authorities
Do you need advice on the taxation of cryptocurrencies in Germany? Our crypto tax experts will be happy to advise you! Please fill out our contact form for this purpose.