Sweden-based crypto miners have been found to owe over $90 million in taxes following a four-year government investigation. The Swedish Tax Agency, Skatteverket, investigated the activities of 21 crypto mining companies between 2020 and 2023. The investigation revealed that 18 crypto mining companies provided misleading or incomplete information to benefit from tax incentives.
Heavy Blow to Miners in Sweden
The agency’s report indicates that some crypto companies provided misleading business descriptions to avoid paying Value Added Tax (VAT) on taxable transactions. Others found ways to avoid paying import tax on mining equipment or income tax on mining revenue. The Swedish Tax Agency stated:
“The disclosed approach leads to the disappearance of tax from the country through wrongly paid input VAT, unpaid output VAT, and unreported crypto assets.”
The defaulting crypto mining companies need to pay tax authorities a total of over 990 million Swedish kronor (approximately $90 million USD), including about 932 million SEK ($85.4 million USD) in unpaid VAT and approximately 57.9 million SEK ($5.3 million USD) in tax surcharges.
Swedish Miners Respond Promptly
While crypto mining companies contested the Swedish Tax Agency’s demand for $90 million, the administrative court approved the appeals of two mining firms and rejected the rest, adjusting the amounts accordingly.
In November 2023, the crypto mining company Hive Digital Technologies purchased a commercial property and a data center in Boden, Sweden. At that time, Hive’s country president in Sweden, Johanna Thornblad, stated:
“The new data center will allow HIVE to expand its regional footprint while showcasing its commitment to CSR-focused, sustainable practices, environmental responsibility, and energy efficiency with the latest green energy-supported data center.”
The company also confirmed that the property would house next-generation ASIC servers and boost Bitcoin production. Hive owns and operates data center facilities in Canada, Sweden, and Iceland, promoting the use of green energy for mining Bitcoin and other crypto assets in the cloud.
