Virtual currency is a relatively new phenomenon. Its most prominent example, Bitcoin, appeared in 2009 at the height of the financial crisis, came to widespread prominence in 2013 and has been in the headlines ever since. The aim of this article is to outline the main challenges that virtual currency has created for the tax administrations and give some recommendations on how to tackle them. It also provides an overview of the diverging views of tax authorities on the taxation of virtual currency.
Intertax