Divly report claims that Finish crypto investors were the most active in paying their crypto taxes.
Divly, a Swedish cryptocurrency tax platform that focuses on creating localized tax reports for cryptocurrency traders globally, shared a study claiming that less than 1% of crypto investors paid their taxes in 2022.
According to the report shared on April 5th, Divly made these calculations taking into account the correlation between individuals declaring cryptocurrency on their tax returns and the search volume for crypto tax-related keywords across various countries. Moreover, it used Statista's Global Cryptocurrency Report to determine the number of crypto holders in each nation.
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The Divly report alleges that Finish crypto investors were the most active in paying taxes on their crypto investments. The report claims that over 4% of Finish investors paid their taxes. In second place were Australian investors, of which 3.65% paid their taxes. Following the list were Austrians, Germans, and Britons.
The United States ranked 10th, with an estimated 1.62% of crypto holders paying taxes. In contrast, India, Indonesia, and the Philippines exhibited the lowest tax compliance rates among crypto investors at 0.07%, 0.04%, and 0.03%, respectively.
Despite these figures, the report's methodology has drawn scrutiny. Divly's study acknowledges that search volume data may not accurately represent the actual number of crypto taxpayers, as not all individuals who pay taxes search for crypto tax-related information online.
Furthermore, the study assumed that the number of searches related to crypto tax reporting remained constant across countries and cautioned against potential bias towards nations with greater internet access and more precise search volume data.
Danny Talwar, Global Head of Tax at a crypto tax software firm Koinly, disputed the report's findings, stating:
It is likely that 99.5% is not reflective of countries that have specific crypto tax guidance and strict compliance requirements such as USA, Canada, Australia, and India.
Greg Valles, a chartered accountant and board member of Blockchain Australia, also voiced doubts regarding the methodology's accuracy.
In March, CoinTracker integrated its platform with H&R Block, which will assist Americans in automatically generating crypto tax reports and filing Form 8949 for their crypto trading activity.
