From what I get, the article explains that if you incur losses, your tax liability goes negative, letting you carry that forward to offset future tax liability. So if you owe $5000 the next year, you can reduce it by last year’s losses. Honestly, this setup feels intrusive; it pushes citizens to disclose their holdings, which raises big privacy concerns. Reporting your assets could expose you to risks if that info ever leaks, as it shows just how much you hold. I’m not in favor of this proposal, even if it won’t affect me directly since I’m not in that country. Here’s hoping it doesn’t go through.
That's true; it does; I didn't comprehend what it meant at first, but to me it seems it's overcomplicating things, as the nature of a large number of investments, including cryptocurrencies, is highly volatile. What's the point then? From my understanding, it's what you mentioned already; it's an intrusive process to keep track of each investor's holdings, closely monitoring them every year, ensuring that they have the full history of your investment portfolio when they're sold. I'm hoping it doesn't go through, because even though it's in Denmark, more countries may follow if it's ultimately accepted.