Topic: Avoiding Tax on Capital Gains from Bitcoin (Legally?) - page 2. (Read 383 times)

From where I'm at, Capital Gains Tax is capped at 6%, and 30-45%, I think, only applies to rich countries with almost free everything.



With the move from every corner regarding crypto regulation, I heavily doubt that you will actually find an exchange that imposes no KYC to their customers. Some don't, but once you reached $1000 on trading volume, you are forced to submit, else you cannot continue your trading ventures.


Either way, they would still tax you even if no profit was made. You can't just go around and say that "hey I sold this to Alice, I made no profit okay?" and expect them to believe your story. Taint analysis on the blockchain is present. The only thing to do is perhaps change to a different altcoin then back to BTC then again, point 1, good luck finding an exchange with no KYC.


This is what most politicians do: transfer dirty money into Swiss bank accounts. Perhaps you can do the same, but then again exchanges hold the transaction records so I don't think you can go around with that.


None that I know of.


Swiss bank accounts are the only bank accounts that you can ensure to not give your banking info to other countries, though of course it will raise red flags once you do it. And with most countries closing their exchanges from outsiders, I don't think the freedom to link offshore bank account to e.g. an American exchange would still be possible.

In the event that you make a profit from the sale of your bitcoin, in many countries you will need to pay capital gains tax on this profit.

You take all the risk, and if it pays off, the government will be there looking for their taste - 30 to 45% of your gains.

Edit: The tax is generally closer to 10-20% depending on how much you invested, in most countries. But this is still quite a large chunk of change.

Hypothetically speaking of course (I personally would never try to avoid paying taxes), is there a simple way to avoid paying these types of taxes?

Exchanges are collecting your name and handing your transaction info over to the government for tax purposes. But with a little bit of creativity, is there not a way around this? E.g.

1. Using an exchange that does not require KYC / taking your personal information
2. Moving your bitcoin to another address not associated with your exchange account - If asked you can say that you have sold this with 0 profit to the person who holds that new address, "a man by the name of John Smith I think it was". The bitcoin can then be sold on an exchange which does not require KYC.
3. Transferring the funds from the sold btc to an offshore bank account, e.g. in Puerto Rico, which does not share information with foreign governments for tax purposes.

The question is, are there any reliable exchanges/p2p sites which do not require name/passport to sign up to?
Can these exchanges be linked to an offshore bank account in a jurisdiction which does not share banking info with other countries?