March 1, 2023

Man Tries To Evade Taxes On Crypto By Calling Them “Data Set”

A crypto investor in Germany called cryptocurrencies "data set" instead of money and refused to pay taxes.

The crypto investor called the tax on his crypto profits “foo’s tax.”

“Fool's Tax” is when someone pays too much tax, not doing due diligence, being ripped off, not being thorough enough etc.

In Germany, tax is not charged on crypto earnings if you hold them longer than a year.

The plaintiff argued that crypto gains are a record and therefore cannot be qualified as an “commercial asset” subject to income tax.

However, the Cologne Fiscal Court did not follow the arguments of the plaintiff and had dismissed the suit in 2021.

In his income tax return for 2017, the plaintiff declared a crypto profit* of around $3.6 million.