OneCoin a “pyramid game” for tax in Sweden, not a cryptocurrency
Evidently OneCoin investment in Sweden has resulted in a few taxation issues popping up.
While the level of investment into OneCoin from Sweden as a whole isn’t known, it’s significant enough for the Swedish Taxation Authority to add a OneCoin query to its cryptocurrency taxation FAQ.
The fourth question on the Swedish Tax Authority’s FAQ list asks, “Does OneCoin count as a cryptocurrency?”
The answer to which is “no”. The Swedish Tax Authority sees OneCoin as “basically a pyramid game”.
The Swedish Tax Agency’s view is that onecoin is not a crypto currency. The Swedish Tax Agency’s view is instead that onecoin is basically a pyramid game.
Pyramid games are treated taxally as a lottery.
OneCoin falling under the lottery section of Sweden’s tax code means that investment into the scheme cannot be claimed as a deduction.
Neither can losses.
The Swedish Tax Agency’s view is that onecoin is organized outside the EEA.
You should therefore record income from onecoin as income from capital as a profit in a foreign lottery.
You may not deduct losses.
The fiscal year in Sweden follows the caldendar year (Jan-Dec), suggesting that last year a significant number of Swedish OneCoin victims might have attempted to recover losses as tax write-offs.
On the plus side the Swedish Tax Authority isn’t interested in taxing investor’s OneCoin Ponzi points balances.
If you have been compensated for networking (bonus or commission) and have received both cash and a certain amount of onecoins, the Swedish Tax Agency is of the opinion that it is only the cash part that you should directly assume as income from capital.
If you then receive compensation for the onecoin you have received, you should include this as income of capital as a win in a foreign lottery.
As above, only cash commissions are taxable.
The second paragraph likely doesn’t apply, following OneCoin’s decision to suspend ROI withdrawals since January, 2017.
Prior to this collapse OneCoin investors were able to convert OneCoin balances into cash through an internal exchange (OneCoin paid ROI requests out with newly invested funds).
It should be noted that the Swedish Taxation Authority, outside of tax related matters, is not an enforcement regulatory body.