Swedish Crypto Miners Face  Million Tax Bill After Investigations

Swedish crypto miners are facing tax bills totaling over $90 million after investigations by the Swedish Tax Agency revealed four years of misappropriations. The agency investigated 21 crypto-mining firms between 2020 and 2023, uncovering misleading or incomplete information filed by 18 firms to benefit from tax incentives. Some firms provided misleading business descriptions to avoid VAT on taxable operations, while others evaded import taxes on mining equipment and income tax on mining revenue.

The crypto mining firms are required to pay over 990 million Swedish krona ($90 million) in total, including unpaid VAT of 932 million krona ($85.4 million) and tax surcharges of approximately 57.9 million krona ($5.3 million). Although some firms appealed against the demand, the administrative court upheld the appeals of only two mining firms.

In November 2023, crypto mining firm Hive Digital Technologies acquired a commercial property and a data center in Boden, Sweden, to expand its operations. The company emphasized its commitment to environmental responsibility and energy efficiency with its “green” energy-powered data center, which will also house its incoming generation of ASIC servers to increase Bitcoin production.

Hive Digital Technologies operates data center facilities in Canada, Sweden, and Iceland, advocating for the use of green energy to mine digital assets like Bitcoin.

The tax investigations and subsequent tax bills highlight the growing regulatory scrutiny faced by crypto mining firms worldwide and underscore the importance of compliance with tax regulations in the cryptocurrency industry.