Divly, a crypto tax platform based in Sweden, has issued an exclusive report that evaluates that just 0.53% of crypto investors around the world recompensed taxes over their crypto assets back in 2022.
Nonetheless, tax experts have expressed doubts about the methodology and the figures disclosed by the respective study.
Crypto Tax Company Asserts Above 99% of Crypto Investors Evaded Tax Last Year
Divly’s report provided its evaluations following a thorough analysis. Its analysis took into account the relationship among the number of crypto holders (who declared their crypto holdings in the tax returns) as well as the search volume related to the keywords dealing with crypto tax in diverse countries.
The report additionally utilized the number of those who held crypto in each of the countries according to the Global Cryptocurrency Report published by Statista while carrying out calculations.
The report evaluates that Finland possesses the highest number of individuals who recompensed the taxes that they were liable to pay on their crypto holdings in the previous year at 4.09%.
After that, the platform places Australia in the 2nd place with a 3.65% proportion of tax-paying crypto holders during 2022.
As mentioned in the report, the United States comes at the 3rd rank within this list. It states that just 1.62% proportion of US-based crypto-holding people paid the taxes implemented on their assets.
In addition to this, Divly’s report has put India after that, with just 0.07% of people paying taxes during the aforementioned period.
Indonesia, as well as the Philippines, come at the end of the list with 0.04% only taxpayers belonging to the former while just 0.03% of taxpayers belonging to the latter respectively. The platform’s methodology to estimate these results is questionable.
It says that the actual sum of the crypto taxpayers may not be fully reflected by the search volume-related data because not every taxpayer searches for online information related to crypto tax.
Another factor in the methodology was that the sum of searches associated with reporting crypto tax did not differ across diverse countries.
Apart from that, it warned that some biases could also have existed toward countries that have more internet accessibility as well as quite accurate data related to search volume.
Danny Talwar, who plays the role of the head of tax at Koinly (a software related to crypto tax), argued about the findings offered by the report regarding the great portion of people engaged in crypto investment.
Tax Experts Dispute with the Report
He stated that 99.5% might not be reflective of the nations that have particular guidance regarding the crypto-related tax along with stringent compliance requirements. As per the executive, the United States, India, Australia, and Canada come within that category.
A chartered accountant named Greg Valles, who is Blockchain Australia’s board member, also spoke on this by saying that the methodology cannot be declared as 100% accurate.
Both of the tax experts pointed out that the government data, as well as surveillance efforts in combination, made it difficult for the citizens to get involved in tax evasion.
As per Valles, the technologies utilized by the authorities are getting more and more sophisticated to point out anyone who does not comply. The tax professional also cautioned that the people who do not report the crypto profits at present are at risk of getting caught in the upcoming years.
