The Spanish State Tax Administration has published guidelines to reduce tax evasion for cryptocurrencies, such as bitcoin. The document is part of the general program of the so-called Annual Tax and Customs Control Plan.
Spanish tax authorities may request local exchanges for customer information
According to the paper, the Spanish Treasury entity is attempting to apply three measures as the hype from the crypto markets generates “tax risks”. Therefore, the agency expects to collect information as a countermeasure against tax-related crimes.
The watchdog is using the first measure to request information from the local crypto exchanges about holders of digital assets. The document makes it clear that they are pursuing such measures to boost voluntary tax payments on crypto transactions.
The second input from the Treasury entity reads as follows:
Systemization and analysis of the information obtained, in order to facilitate the actions to verify the correct load of the operations performed and the origin of the funds used in the acquisition of cryptocurrencies.
But the state-sponsored agency wants to cross national borders. The paper says the Treasury’s plan aims to “strengthen international cooperation” by participating in international forums with the third measure.
The purpose of such a move is to “gather more information” regarding cryptos and other digital assets, the paper explained.
Future initiatives to stimulate the new era of ‘digital money’
The Spanish Treasury also expressed concern about how advances in technology allow criminal organizations to prosecute financial crimes through cryptos. However, the paper also reveals that Treasury is aware of the growing adoption of cryptocurrency, particularly in Europe:
Digital money and the trend to reduce the use of cash has led to an increase in the use of cryptocurrencies as a means of payment, so that more than 6,500 cryptocurrencies will be in circulation by the end of 2020. Most of the world’s central banks are developing their digital currencies, including the European Central Bank with the creation of the digital euro, in which Spain participates.
The annual tax and customs control plan aims to strengthen initiatives to promote collaboration with service providers and e-commerce platforms to adopt new digital money solutions.
What do you think of the paper of the Spanish treasury? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or invitation to an offer to buy or sell, or a recommendation or endorsement of products, services, or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.