The Spanish tax authorities have ordered a DeFi investor to pay approximately 10.5 million USD in back taxes. They classified the use of crypto collateral for loans as capital gains, despite the absence of any asset sale.
Previously, the investor declared all cryptocurrency transactions and paid 5.84 million USD in taxes. However, three years later, tax authorities imposed additional tax on the collateralized lending activity.
Tax consultants criticize the classification of stablecoin loans and DeFi transactions as taxable events, arguing it contradicts Spanish and EU law. Article 33 of the Spanish Personal Income Tax Act requires that capital gains reflect actual economic benefits.
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