Request for information about crypto: why are the tax authorities asking these twenty questions?
In briefThe tax authorities’ hunting season on crypto has begun. We are seeing the same twenty questions put to many of our clients. Think twice before answering: the tax authorities are looking for grounds to tax your crypto gains as miscellaneous income. Your own answers could provide the arguments they need. Answer accurately and fully, but do not give the tax authorities unnecessary ammunition through careless wording or unsupported conclusions. Have a lawyer review your answers before submitting them. Do not use ChatGPT, Claude or other AI tools to draft them: they cannot reliably capture the nuances of tax law and the specific details of your case. Every word counts. |
We are seeing the same twenty questions recur in requests for information about crypto sent to several of our clients. The tax authorities ask about transactions and gains, but also about education, occupation, software, social media and the proportion of total assets held in crypto.
This reflects the growing scrutiny of crypto. DAC8 expands the exchange of information, while banks investigate the source of crypto funds and must consider reporting suspected money laundering to the Belgian Financial Intelligence Processing Unit (CTIF-CFI). Tax audits have already begun, ahead of the first DAC8 exchange of information covering the 2026 income year. We previously discussed this in our articles on requests for information about crypto and transferring crypto gains to a bank account.
I. The tax authorities are looking for grounds for taxation
Many of the questions serve the same purpose: the tax authorities are looking for factors that could allow them to classify your activities as speculative, outside the normal management of private assets, or professional. They may then use those factors to justify taxing the proceeds as miscellaneous income or professional income.
Those who have done their homework will notice that this questionnaire closely resembles the one used by the Belgian Ruling Commission (DVB), which we discuss in our article on tax rulings for crypto and the DVB’s assessment criteria. The tax authorities are drawing on questions that the Ruling Commission uses to assess whether crypto investments fall within the normal management of private assets. However, these strict assessment criteria are not statutory rules that can automatically be applied to every case. Our page on applying for a crypto tax ruling provides further guidance and a fillable template.
The broad scope of the questionnaire can therefore turn it into a fishing expedition: a search for anything that might support a tax assessment. Whether a particular question exceeds the tax authorities’ statutory powers of investigation must be assessed on a case-by-case basis. A standard questionnaire is not automatically unlawful.
Every word in your response may be used to help justify a tax assessment. An inaccurate description of your activities can be difficult to correct later.
We recommend having a lawyer review your answers before you submit them and agreeing on a response strategy together. What matters is not only the accuracy of the information provided, but also how the tax authorities may interpret and use your words in a potential tax assessment.
We also understand that some people wish to answer these questions themselves. The guidance below is intended to help them do so thoughtfully. For each question, we explain why the tax authorities are asking it, which tax classification they may be seeking to support, and which points require particular care. This will help you formulate your answers more precisely and provide the necessary context, without creating a misleading impression of your activities through an unfortunate choice of words or an incomplete explanation.
1. Please provide a detailed overview of all purchases and sales of crypto assets
The tax authorities ask for the realised capital gains and losses, acquisition costs, expenses and net income for each income year.
Here, the tax authorities are gathering the figures they need to calculate any tax due. These details also reveal your trading behaviour. A transaction overview can therefore serve both to determine the amount of a tax assessment and to support classification as miscellaneous income or professional income.
2. How did you acquire the cryptocurrencies you traded?
The question lists, among other things, inheritances, gifts, personal investments, reinvestments, mining, airdrops, minting and Initial Coin Offerings.
The method of acquisition can affect the tax treatment. Purchases funded by savings, crypto received as remuneration, mining and gifts differ from purchases funded by borrowing. The tax authorities also want to establish where the initial capital came from. Unexplained flows of funds may lead to further questions about the source of your wealth.
3. How many years have you been investing in cryptocurrencies?
This question is intended to establish how far back your crypto activities go and which earlier years may still be subject to a tax assessment. Your answer helps guide that investigation, but it does not determine how far back the tax authorities may legally look: this is governed by the applicable investigation and assessment time limits.
4. What total amount have you invested in cryptocurrencies to date?
The tax authorities also request a complete list of the crypto wallets you hold or manage, including the wallet addresses, covering both custodial and non-custodial wallets.
The tax authorities are examining the financial scale of your activities and seeking to establish the extent of your crypto holdings. In tax ruling practice, an investment of more than €50,000 in crypto is treated as an indicator of miscellaneous income. This is not a statutory threshold and does not mean that the capital gains are automatically taxable as miscellaneous income.
Wallet addresses are also used to trace transaction flows and check whether your overview is complete. Read our critical analysis of tax rulings on crypto.
5. How frequently do you buy and sell cryptocurrencies?
The tax authorities ask how many times a year you carry out transactions and request details of purchases, sales and conversions, including dates and amounts.
A high trading frequency may be used against you as an indication of speculation, supporting classification as miscellaneous income. Combined with a high degree of organisation and a substantial time commitment, it may also support classification as professional income.
Read more in our article on day trading and taxation in Belgium.
6. What is your investment strategy for cryptocurrencies?
The question lists strategies such as buy-and-hold, trend trading, active trading, day trading, scalping and arbitrage. It also asks which tools you use.
The tax authorities are looking for features that depart from passive, long-term asset management. Day trading, scalping, arbitrage and other active strategies may be used to support classification as miscellaneous income or potentially professional income.
This does not mean that every departure from buy-and-hold automatically gives rise to taxable miscellaneous income. Attempts to treat an entire portfolio as speculative because part of it is actively managed are also open to challenge. See our analysis of mixed crypto portfolios and the Ruling Commission’s position.
7. Do you mine cryptocurrencies using your own mining rig or through a mining pool?
The tax authorities may view mining as an indication of an active income-generating activity, potentially supporting classification as professional income or miscellaneous income. Relevant factors may include the equipment used, the degree of organisation and the time spent on the activity.
We do not accept that classification without qualification: in our article on declaring crypto gains, we also discuss why taxing non-professional mining as miscellaneous income is open to challenge.
8. Do you buy or sell cryptocurrencies through an automated process or using automated software?
A further question asks whether you designed the process or software yourself.
Automated trading software may be used as an indication of speculative or organised trading. The tax authorities may rely on this to support classification as miscellaneous income or, where the activity is organised on a professional basis, professional income. What the software actually does is crucial: keeping records is different from automated trading.
See also our discussion of day trading, bots and professional trading.
9. What is your current occupation? What did you study?
The tax authorities also ask: “Have you acquired knowledge of cryptocurrencies through your professional activities?”
The tax authorities are looking for a connection between your professional knowledge and your crypto activities. Such a connection may be used to support classification as professional income or miscellaneous income. However, an IT qualification or a role in finance does not automatically turn your private investments into a professional activity.
10. Have you invested in a cryptocurrency savings fund?
This question is outdated and reveals little without an explanation of the specific product involved. The DVB has since removed it from its revised questionnaire. If it still appears in your letter, the key issue remains which activity and which returns it refers to. We discuss this update in our article on the revised tax ruling practice.
11. Are you active on social media, forums, blogs or similar online platforms within the cryptocurrency community?
The tax authorities also ask whether you give talks or provide training and whether you receive payment for doing so.
The tax authorities are examining the extent of your involvement in crypto and whether you also engage in commercial activities. Training, promotion, advice and remuneration may provide grounds for classification as miscellaneous income or professional income. Simply following a forum or showing an interest does not establish this. See our overview of the tax categories of crypto income.
12. What percentage of your total (movable) assets have you invested in cryptocurrencies?
The question concerns the proportion at the time of purchase and also asks about other investments.
This is an important question in tax ruling practice. The DVB takes a particularly strict approach to investments exceeding 25% of the relevant assets and may view this as an indication of management outside the normal management of private assets. We challenge the use of such a percentage as an automatic cut-off: it is not a statutory threshold.
Pay attention also to which assets are included in the calculation: the more recent DVB questionnaire refers to financial assets, whereas older questions refer to movable assets. See our articles on normal asset management and speculation and the revised tax ruling application.
13. Do you use special equipment, such as a hardware wallet, to protect your cryptocurrencies?
This question also appeared in the older DVB questionnaire and has since been removed. However, we have observed that the tax authorities still use it. A hardware wallet is a standard security measure. Inferring speculative or professional trading from its use is an unwarranted leap. The fact that older tax enquiry letters still include this question does not make it a decisive criterion. See our discussion of the revised questionnaire.
14. Do you also invest in cryptocurrencies on behalf of other people?
The tax authorities also ask whom you invest for and how much you invest on their behalf.
Trading on behalf of others may indicate activities that go beyond managing your own private assets. Any remuneration may also have separate tax implications. The question may also raise issues about who owns the funds, where they came from and who is entitled to the proceeds.
15. Have you borrowed money to finance your cryptocurrency purchases (leveraged trading)?
The tax authorities also ask how much you borrowed and from whom.
Debt financing is a factor the tax authorities may cite to support a finding of speculation or management outside the normal management of private assets. Where the activity is organised on a professional basis, classification as professional income may also be relevant. The method of financing therefore directly affects the discussion about tax classification. Read more about normal asset management versus speculation.
16. What is the current market value of your cryptocurrency portfolio (please specify the valuation date)?
The tax authorities want to establish the extent of your assets and the potential tax at stake in your case. They may compare that value with your initial investments and declared income. However, the total portfolio value is not taxable profit: a distinction must be made between its value, the capital invested and the realised gains or losses.
17. Do you seek advice from professionals in the financial and/or IT sectors for your cryptocurrency investments?
This question examines how your activities are supported and organised. Depending on the type of assistance, the tax authorities may attempt to infer speculative or professional trading. However, consulting a lawyer or receiving help with record-keeping is different from having professionals execute your trading strategy.
18. Have you received any income from movable assets through crypto assets and/or related services?
The question specifically mentions income from lending crypto assets, also known as lending, and from staking.
Here, the tax authorities are looking for income beyond capital gains on sales. They may argue that this income should be classified separately as income from movable assets, miscellaneous income or professional income. The product’s technical and legal structure is decisive; treating all rewards in the same way is an oversimplification. We discuss this in Tax on crypto staking: not always 30%.
19. Have you held a payment or credit card linked to crypto assets, such as a Binance card?
The tax authorities request an overview of card transactions, amounts, the crypto assets involved and spending dates. Some letters also expressly request the acquisition cost.
The tax authorities want to know whether you spend or convert crypto without the funds first passing through a traditional bank account. This may prompt questions about undeclared transactions or income. Combined with other factors, it may also give rise to suspicions of tax fraud.
Using a crypto card does not, in itself, prove fraud. The same distinction matters when it comes to undeclared crypto accounts, as discussed in our article on declaring crypto accounts.
20. Have you acquired crypto assets through airdrops and/or Initial Coin Offerings?
The tax authorities ask for the dates of receipt, the types and quantities of crypto assets received, and supporting documents.
For an ICO, the tax authorities may point to the early-stage, high-risk nature of the investment as evidence of speculation. For airdrops, they examine, among other things, whether the tokens were genuinely received free of charge or constituted remuneration for services rendered. Neither label, on its own, determines the tax treatment.
See also our overview of declaring different types of crypto income.
II. Every word counts
A request for information may be a preliminary step towards a tax assessment. The tax authorities may subsequently use your answers in a notice of amendment, explaining why they intend to amend your tax return. You can respond to that notice: it is not yet a final tax assessment. See the FPS Finance guidance on tax audits.
We advise against having ChatGPT, Claude or other generative AI tools draft your answers. A convincing text may contain incorrect tax conclusions, imprecise terminology or unintended admissions. Your own factual explanation and common sense are a better starting point.
Answer the questions accurately and fully, but avoid adding unnecessary tax classifications of your own. Understanding why the tax authorities ask a question helps you provide relevant context. It is not a reason to omit facts.
Discuss your response strategy before answering. Once something is on file, it may later be used against you.
III. The importance of a carefully worded response
The answers you provide to a request for information form part of your tax file. The tax authorities may rely on them to assess your activities and justify a potential tax assessment. This applies not only to the amounts you disclose, but also to how you describe your investment strategy, the time you spend on crypto and the extent of your involvement.
A request for information may be followed by a notice of amendment. In that notice, the tax authorities explain why they intend to amend your tax return, for example by taxing additional income or classifying crypto gains as miscellaneous income or professional income. Your earlier statements may be used to support this.
Although you can clarify or correct an answer later, the original statement remains on file. A subsequent correction does not necessarily eliminate its potential consequences. It is therefore important that your answers are factually accurate, sufficiently nuanced and supported by documentary evidence from the outset.
If you are unsure, we recommend consulting a lawyer before submitting your response. Seeking advice early allows for a careful assessment of the scope of the questions, the relevant facts and your response strategy. This is preferable to having to revise statements after the tax authorities have already relied on them.
At Aeacus, we offer a free initial consultation with no obligation. During this meeting, you can discuss your request for information, any concerns or specific points requiring attention. We will explain what to consider when preparing your answers. This initial consultation is entirely free and does not oblige you to engage our firm afterwards.
IV. What happens if you fail to respond or respond late?
As a rule, you must respond to a request for information within one month. Always check the specific deadline and how it is calculated in your letter. Start gathering the requested information promptly: reconstructing crypto transactions and obtaining data from platforms may take longer than expected.
If you fail to respond or respond late, you risk administrative fines ranging from €50 to €1,250 under Article 445 of the Belgian Income Tax Code 1992, and the tax authorities may issue an ex officio assessment. In that case, they determine your taxable income based on the information available to them. You must then, in principle, prove the correct amount of your taxable income. This shift in the burden of proof can make your defence considerably more difficult, particularly if your transaction history is incomplete. However, the tax authorities may not issue an arbitrary assessment.
If you cannot meet the deadline, submit a written request for an extension before it expires, stating your reasons. Explain why you need more time and propose a specific new response date. Obtain confirmation that the extension has been granted: submitting a request does not automatically extend the deadline.
Even if you consider certain questions too broad, unclear or legally questionable, failing to respond is generally not an appropriate approach. Seek timely advice on how to formulate your objections and what information you must provide. This helps prevent a substantive discussion about your crypto investments from being complicated by a failure to meet the response deadline.
V. The new capital gains tax raises the stakes
Until 2025, the central question was whether your crypto gains were exempt or taxable at 33%. From the 2026 income year, the choice is 10% or 33%, making your answers to this questionnaire more consequential than ever.
Gains on crypto assets realised within the normal management of private assets now fall within the scope of the new 10% capital gains tax, with an annual tax-free allowance of €10,000 (Article 90, first paragraph, 9°, c of the Belgian Income Tax Code 1992). If the tax authorities classify your activities as speculative or outside normal asset management, the rate remains 33%. You also lose the protection of the valuation snapshot of 31 December 2025, meaning that gains accrued before that date may also be brought into charge.
The burden of proving that your activities fall outside normal asset management rests, in principle, with the tax authorities. Circular 2026/C/74 of 22 July 2026 expressly confirms that this classification is an exception to the general rule and must be established through a combination of factors, never on the basis of a single criterion.
That is precisely why these questions matter: your answers may give the tax authorities the evidence they need to build that case.
About Aeacus Crypto Lawyers
Aeacus Crypto Lawyers is a law firm specialising in the legal and tax aspects of crypto assets. We advise private investors, entrepreneurs and businesses on matters including crypto taxation, tax rulings, tax regularisation and questions concerning the source of crypto wealth. We also assist with transferring crypto funds to bank accounts and dealing with financial institutions.
Our tax disputes team is led by Christophe Romero and has extensive experience in crypto-related tax audits and disputes. We support clients from the initial request for information through to responding to a notice of amendment, discussions with the tax authorities or the Special Tax Inspectorate, and any administrative appeals or court proceedings.
We combine expertise in tax law and procedure with an understanding of crypto transactions and blockchain technology. This enables us to assess both the legal arguments and the underlying transactions and build a well-supported defence of your case.
