The Sperm Tax- Prize for best performance by tax authorities (III)

Will a tax on sperm donation lead to a decline in fertility? According to BBC and Reuters, the source of the world's biggest sperm bank may soon run dry if Danish authorities decide to tax donors. Denmark, with the world's highest income tax levels, wants sperm donors to pay tax on the 500 crown (US$84) reimbursement men receive for their services.
However, the story isn't what it seems. Cryos International Sperm Bank predicts a drop in sperm donors not only because of the economic impact of the tax, but also because collecting the tax requires that the identity of donors be revealed to the government, which can lead to trouble with paternity suits down the road. Until now fees earned by sperm donors have been tax exempt. The removal of this tax preference can have worldwide consequences, since Cryos International Sperm Bank is one of the leading Sperm Banks in the world.
See the BBC reports and the report from Reuters.

See also April and March prizes for best performance by tax authorities.