Emaid/Maid since the beginning has been a placeholder token that is meant to be replaced with the token technology that will be used on the network. At TGE in January 2025 the ANT token that is meant to be used on the network will be ready. Emaid/Maid will be replaced with the new type of ANT network token. The ANT token asset will be the same as Emaid/Maid is a representation and placeholder of. As the replacement happens 1:1 then investors don’t gain anything. Just because an crypto asset changes name and type, that should not in a logical sense make it a taxable event, as you gain nothing. Type/technology and name will change but the asset will be the same as the placeholder token was meant to represent,
Your reasoning is logical, but the taxation of such an event in Sweden will depend on how the Swedish Tax Agency (Skatteverket) interprets the nature of the token swap. Here are the key points to consider:
Below chatgpt 4o answered a few more questions, if change of maximum supply wuold make any difference and such, if the wording proxy token mentioned in the whitepaper make any difference, manual versus automatic distribution.
Summary
During the year towards the replacement, the team has decided to reduce the total maximum future supply of the ANT token, the replacement of Emaid/Maid to Ant will still be 1:1. Will that effect that it might be seen as a taxable event?
ChatGPT said:
ChatGPT
The reduction of the total maximum future supply of the ANT token should not inherently change the nature of the replacement being a 1:1 swap. However, there are a few points to consider regarding its potential impact on taxation:
Key Considerations:
No Change in Your Holdings:
If your EMAID/MAID tokens are replaced 1:1 with ANT tokens, and the value of what you hold remains the same at the time of the swap, it would still align with your original argument: there is no realized gain or new acquisition, just a technical replacement.
The reduced total supply affects future availability of ANT tokens but does not directly alter the value of your holdings during the swap.
Market Valuation Impact:
A reduced total supply could lead to speculation about increased scarcity, which might increase the market value of the ANT tokens over time. However, this would only affect taxable events if you sell, trade, or otherwise realize gains after the swap.
If Skatteverket considers the reduced supply to significantly change the characteristics of the token (e.g., its perceived value or function), it might complicate how they classify the event. However, as long as the 1:1 swap occurs at the same value with no realized gains, this should not trigger taxation.
Swedish Tax Perspective:
Skatteverket focuses on whether a disposal of an asset has occurred and whether a gain is realized. If the reduction in supply does not result in an immediate gain during the swap, it should not make it a taxable event.
The reduction in supply would likely be viewed as a technical change to the tokenomics, not a factor directly impacting individual holders' tax liabilities unless it involves new rights or benefits (e.g., bonuses, staking rewards, or similar).
Recommended Steps:
Seek Clarification:
If possible, request a ruling or guidance from Skatteverket on whether such a token swap, given the changes in total supply, would be taxable.
Document the Process:
Keep evidence showing that the swap is 1:1 and involves no additional tokens, benefits, or realized gains for holders.
Focus on the Timing of Tax Events:
Remember, tax liability typically arises when you realize gains, not when the structure or supply of a token changes, provided your personal holdings and value remain the same.
Likely Outcome:
As long as the swap occurs at a 1:1 ratio with no additional financial benefit and no disposal (selling or exchanging the old tokens for different ones of greater value), it should not be a taxable event, even with the reduced supply. The focus remains on whether you gain or dispose of value, not on changes to the broader tokenomics.
You said:
If the change happens with in an automatic way, where snap shot of the blockchain happens and the replacement token is then distributed to addresses, or if it requires manual steps exmaple sending the token to the foundation and getting the new token in return or similar, would that potentialy change anything?
ChatGPT said:
ChatGPT
The method by which the token replacement occurs—whether automatic (via a blockchain snapshot and distribution) or manual (requiring token holders to take action, such as sending EMAID/MAID tokens to the foundation to receive ANT)—could indeed influence how Skatteverket views the event. Here’s how each scenario might be interpreted:
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Automatic Replacement (Blockchain Snapshot and Distribution)
Nature of the Event:
In this case, EMAID/MAID tokens are effectively retired and replaced with ANT tokens automatically. There is no action required by the holder, and the replacement happens seamlessly.
From a tax perspective, this is most likely to be seen as a technical upgrade of the existing asset. Since no disposal (sale, exchange, or realization of value) occurs and you gain nothing additional, it is unlikely to trigger a taxable event.
Tax Agency Interpretation:
Skatteverket would likely treat this as the same asset continuing under a new form, especially if documentation supports that ANT is a 1:1 replacement for EMAID/MAID.
There would be no taxable event unless Skatteverket interprets the new tokens as fundamentally different (e.g., with new rights, benefits, or changes in valuation). However, this seems unlikely in the case of a 1:1 swap.
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Manual Process (Sending Tokens to the Foundation for Exchange)
Nature of the Event:
If holders are required to send EMAID/MAID tokens to a designated address and receive ANT tokens in return, it could be interpreted as a disposal of EMAID/MAID and an acquisition of ANT. Even though the exchange ratio is 1:1 and no gain is realized, this might resemble a transaction, which could attract tax scrutiny.
Potential Issues:
Skatteverket could argue that sending EMAID/MAID tokens constitutes a disposal, even if no economic benefit is realized.
The new ANT tokens might be treated as a separate acquisition, with their cost basis reset to the market value at the time of receipt. This could introduce a tax event, particularly if the value of ANT differs significantly from EMAID/MAID during the swap.
Mitigation Strategies:
Provide clear documentation showing the manual process is part of a 1:1 technical replacement with no gain for holders.
Emphasize that EMAID/MAID was always intended as a placeholder for ANT, and the manual process does not involve any real disposal or profit-making transaction.
Comparison of Scenarios
Aspect Automatic Replacement Manual Process
Holder Action None required; fully automated Sending old tokens to receive new tokens
Interpretation Risk Lower: Likely viewed as a technical upgrade Higher: May be seen as disposal + acquisition
Tax Event Likelihood Minimal: No disposal or gain Possible: Disposal may trigger tax scrutiny
Recommendations
Seek Clarity from Skatteverket:
Describe both methods and inquire whether either would trigger a taxable event.
Provide evidence that the swap involves no realized gains, regardless of the method.
Document Everything:
For either method, retain detailed records showing the replacement is a 1:1 process, including project documentation, snapshots, or proof of token intent.
Cost Basis:
Clarify that the cost basis of EMAID/MAID should carry over to ANT tokens to avoid resetting their value at the time of replacement (this is crucial for future disposals).
Likely Outcome
Automatic replacement is the safest option to avoid being classified as a taxable event.
Manual replacement introduces a slight risk, but if well-documented and clearly defined as a technical swap with no economic gain, it should still not result in taxation.
You said:
I read in the newest version of the whitepaper that Emaid/Maid are mentioned as a proxy token, to me that was what I meant when called it a placeholder token. Is that similar or change anything?
ChatGPT said:
ChatGPT
The term “proxy token” aligns closely with your earlier description of EMAID/MAID as a placeholder token. Both terms suggest that the token is a representation of another underlying or eventual asset, in this case, the ANT token. This distinction strengthens your argument that the swap to ANT is not a taxable event because the EMAID/MAID tokens were never intended as a standalone asset but rather as a proxy for ANT.
Key Points About Proxy Tokens and Tax Implications
Nature of Proxy Tokens:
Proxy tokens act as a stand-in or representation for the actual asset or token to be issued later. In this context, EMAID/MAID are explicitly described in the whitepaper as proxies for ANT tokens.
The 1:1 swap is essentially fulfilling the original promise of the proxy, meaning you are not gaining a new asset but merely replacing the proxy with its intended counterpart.
No Realization of Gains:
Since the EMAID/MAID tokens' value has always been tied to the future ANT tokens, the swap does not generate any new value or profit for the holder.
The swap does not involve disposing of EMAID/MAID in exchange for something unrelated; it is simply replacing the proxy with the actual token it represents.
Skatteverket’s Likely View:
If EMAID/MAID were explicitly described as proxy tokens from the beginning, this strengthens the argument that the swap is not a disposal but rather a continuation of the same asset in its final form.
The classification of EMAID/MAID as a proxy token should reduce the likelihood of Skatteverket considering the swap a taxable event, as it further emphasizes that no economic benefit or change in ownership occurs.
Does Calling It a Proxy Token Change Anything?
No Significant Change: The term "proxy token" is simply a clearer description of what you meant by "placeholder token." It adds precision to your argument and aligns with the project's intent as described in the whitepaper.
Strengthens Your Case: Using the term "proxy token" might make it easier to explain to Skatteverket (or a tax advisor) that the swap is not a taxable event because the EMAID/MAID tokens were never independent assets but always proxies for ANT.
Recommended Actions
Leverage the Whitepaper:
Reference the whitepaper's description of EMAID/MAID as proxy tokens if you need to explain the swap to Skatteverket.
Include this in your documentation to demonstrate the continuity between EMAID/MAID and ANT.
Explain the Proxy Nature in Tax Filings (if Needed):
If asked, clarify that EMAID/MAID tokens were proxies and the swap is not a disposal or acquisition, but the fulfillment of the proxy's purpose.
Stay Consistent in Terminology:
Use "proxy token" in any discussions or documentation with Skatteverket to align with the whitepaper and avoid confusion.
Likely Outcome
The use of “proxy token” should make no material difference to the tax treatment of the swap, but it strengthens your argument that the event is not taxable because it reinforces that EMAID/MAID were never intended to stand alone as independent assets.