German Tax Office Cracks Down on Crypto Investors
Crypto investors in Germany are facing scrutiny from tax authorities, who may demand evidence of their gains. The law requires taxpayers to cooperate actively and provide relevant documents, including bank statements, exchange exports, and blockchain records.
The duty to cooperate is central to the matter, with taxpayers expected to disclose all facts relevant for taxation completely and truthfully. This includes providing a compilation per transaction showing acquisition and disposal dates, prices, fees, and results, as well as raw data from which the compilation was produced.
If part of this evidence is missing, it's not yet a disaster, as long as taxpayers disclose what's missing and why. However, keeping quiet can be costly, as it casts the question in a different light.
The rules are stricter when trading venues are located abroad, requiring taxpayers to obtain documents themselves and pointing out that the platform doesn't answer is not an automatic get-out of jail free card.