Cryptocurrencies, Tax Ignorance and Tax Noncompliance in Direct Taxation: Spanish Empirical Evidence

Álvaro Hernández Sánchez, Beatriz María Sastre-Hernández, Javier Jorge-Vazquez and Sergio Náñez Alonso
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Álvaro Hernández Sánchez: Independent Researcher, 05005 Avila, Spain
Beatriz María Sastre-Hernández: DEKIS Research Group, Department of Economics, Faculty of Social and Legal Sciences, Catholic University of Ávila, 05005 Avila, Spain
Javier Jorge-Vazquez: DEKIS Research Group, Department of Economics, Faculty of Social and Legal Sciences, Catholic University of Ávila, 05005 Avila, Spain

Economies, 2024, vol. 12, issue 3, 1-25

Abstract: This article highlights the complexity of taxation surrounding cryptocurrency transactions due to the lack of uniform regulation, creating uncertainty for both taxpayers and tax authorities. After determining the tax obligations of individuals in taxation, a survey has been conducted to assess the level of knowledge and compliance with tax obligations related to cryptocurrencies. The survey, in which 103 people participated, reveals the confusion and errors that prevail in perceptions of the tax obligations for cryptocurrencies, particularly in transactions such as swapping and staking in personal income tax. This results in almost half of the respondents (49.5%) not declaring any of their operations with cryptocurrencies. The reasons for this include the fact that the majority of respondents (66%) find the regulation of cryptocurrencies in Spain confusing and difficult to understand. Additionally, 87.4% believe that tax agencies should provide more information and resources on the taxation of cryptocurrencies and digital assets, and that there should be clearer and more comprehensive regulation. However, it should be noted that 41.7% also consider that tax regulation discourages investment in cryptocurrencies.

Keywords: taxation; cryptocurrencies; tax evasion; personal income tax; wealth tax; tax obligations; tax compliance (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2024
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