Crypto Tax Evasion

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 re...

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Bibliographic Details
Published in:NBER Working Paper Series 2024-08
Main Authors: Meling, Tom G, Mogstad, Magne, Vestre, Arnstein
Format: Article
Language:English
Online Access:Get full text
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Summary: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.
ISSN:0898-2937
DOI:10.3386/w32865