DAC 8: the EU's lethal weapon for monitoring crypto-taxpayers
The European Commission is preparing a directive that would prevent holders of cryptos from circumventing taxation in the 27 member countries.
The European Union continues to carry out its work on crypto. Barely a few weeks after the final adoption of the MiCA Regulation by the European Parliament, the Commission has just launched work on crypto taxation, and more specifically on ways to prevent cryptocurrency-related tax evasion.
It's an open secret: the tax administrations of the 27 Member States do not have effective tools to hunt down those who cash in capital gains and "forget" to declare them. 💸
According to the Directorate General of Public Finances, quoted by BFM Business, only 20,000 French taxpayers declared gains in 2022 (in respect of the year 2021). Although there are no precise official figures, this number is clearly lower than the reality, especially given the figure on the percentage of French people holding digital assets.
According to the latest KPMG-Adan annual report, published in April, 10% of French people will hold digital assets in 2023; it was 8% in 2022.
"It is difficult to know the number of French (and Europeans, editor's note) who do not declare their income in crypto-currencies, however by cross-referencing data, we understand that tax evasion linked to these assets is still very significant," confirms Pierre Morizot, co-founder of Waltio, a tax assistant that helps European taxpayers declare their crypto capital gains.