Swedish crypto miners are facing a hefty tax bill totaling over $90 million after government investigations uncovered years of financial misconduct.
The Swedish Tax Agency, known as Skatteverket, conducted investigations into 21 crypto-mining companies from 2020 to 2023. The probe found that 18 of these firms provided inaccurate or incomplete information to exploit tax benefits.
Some crypto companies misrepresented their businesses to avoid paying value-added tax (VAT) on taxable operations. Others dodged import taxes on mining equipment and income tax on mining revenue.
Sweden’s Tax Agency Statement
The Swedish Tax Agency highlighted the impact of these practices on the country’s tax revenue, noting significant losses due to incorrect VAT payments, unpaid VAT, and unreported crypto assets.
The crypto mining firms are required to settle a total tax bill of over 990 million Swedish krona ($90 million). This includes unpaid VAT totaling 932 million krona ($85.4 million) and tax surcharges of around 57.9 million krona ($5.3 million).
Although some crypto mining firms contested the tax demands, the administrative court upheld appeals from only two companies. Adjustments were made to the tax amounts in line with the court’s verdicts.
Expansion Plans Amidst Controversy
In November 2023, Hive Digital Technologies, a crypto mining firm, made headlines by acquiring a commercial property and a data center in Boden, Sweden. This move was part of Hive’s strategy to expand its operations and enhance its environmental sustainability efforts.
Johanna Thornblad, Hive’s country president for Sweden, emphasized the company’s dedication to environmental responsibility and energy efficiency. The new data center will utilize green energy to power its operations and accommodate the latest generation of ASIC servers, boosting Bitcoin production.
Hive Digital Technologies operates data centers in Canada, Sweden, and Iceland, prioritizing the use of renewable energy sources for mining digital assets like Bitcoin.
