Crypto Tax Evasion
69 Pages Posted: 21 Aug 2024
Date Written: August 16, 2024
Abstract
We quantify the extent of crypto tax noncompliance and evasion, and assess the efficacy of alternative tax enforcement interventions. The context of the study is Norway. This context allows us to address key measurement challenges by combining de-anonymized crypto trading data with individual tax returns, survey data, and information from tax enforcement interventions. We find that crypto tax noncompliance is pervasive, even among investors trading on exchanges that share identifiable trading data with tax authorities. However, since most crypto investors owe little in crypto-related taxes, enforcement strategies need to be well-targeted or cheap for benefits to outweigh costs.
Keywords: Cryptocurrencies, individual investors
JEL Classification: G50, G10, H20, H26
Suggested Citation: Suggested Citation
(August 16, 2024). Fisher College of Business WP No. 2024-03-013 and Charles A. Dice Center WP 2024-13, Available at SSRN: https://ssrn.com/abstract=4932685 or http://dx.doi.org/10.2139/ssrn.4932685