Crypto Tax Evasion

69 Pages Posted: 21 Aug 2024

See all articles by Tom Meling

Tom Meling

Ohio State University (OSU) - Fisher College of Business

Magne Mogstad

University of Chicago

Arnstein Vestre

University of Chicago

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

Meling, Tom and Mogstad, Magne and Vestre, Arnstein, Crypto Tax Evasion
(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

Tom Meling (Contact Author)

Ohio State University (OSU) - Fisher College of Business ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States

Magne Mogstad

University of Chicago ( email )

1101 East 58th Street
Chicago, IL 60637
United States

Arnstein Vestre

University of Chicago ( email )

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