Following a comprehensive audit, the Swedish Tax Authority, Skatteverket, discovered that 18 out of the 21 crypto mining companies investigated had incorrectly reported their taxes. It was found that these firms were misusing tax benefits and engaging in deceptive financial practices. A total of 932 million Swedish krona (approximately $85.4 million) in unpaid value-added tax (VAT) was revealed, along with additional tax penalties totaling around 57.9 million krona ($5.3 million).

The recent audit conducted by the Swedish Tax Authority on 21 cryptocurrency mining entities spanning from 2020 to 2023 exposed tax irregularities in 18 of the companies. The findings revealed misallocation of taxes, leading to a combined debt of 990 million Swedish krona (approximately $90 million) owed by these companies. The investigations uncovered misuse of tax incentives as well as instances of false financial reporting by the majority of the audited firms.

These entities were manipulating figures to ensure tax-friendliness. Some companies intentionally misunderstood business procedures to evade VAT taxes on their operations, while others unlawfully received export tax refunds on mining equipment. With a significant 932 million krona ($85.4 million) in unpaid VAT and an additional 57.9 million krona ($5.3 million) in deferred taxes, the extent of the financial discrepancies is substantial.

In response to the tax evasion and discrepancies found in the crypto mining sector, Skatteverket has increased its supervision. Following the audit results, the mining firms have filed appeals to contest the tax assessments. The administrative court recently upheld the majority of the tax claims, allowing only a few companies to receive tax relief. By enforcing corrective measures, the Swedish Tax Authority aims to ensure enhanced oversight and prevent similar instances of financial misconduct in the future.

While the crypto mining industry in Sweden faces challenges related to tax compliance, Hive Digital Technologies, a prominent player in the sector, has shifted its operations to Sweden with a focus on environmental sustainability. In November 2023, Hive acquired a data center in Boden, aligning with its commitment to sustainable mining practices and regional growth objectives. The new center will operate on eco-friendly energy sources, reflecting Hive's dedication to environmental, social, and governance (ESG) standards. By leveraging green energy and advanced equipment, Hive aims to expand its green mining initiatives in Sweden, mirroring its previous successes in Canada and Iceland.