Topic: Bitcoin allows tax evaders, Please pay attention.... (Read 486 times)

In my country it is the same as the tax that you pay when you profit from some assets. Like for example if I give my fiat and get dollars, and then dollar goes up, I made a profit right? So, I sell my dollars and get back into my nations fiat, while doing that I pay a "tax" or you could call it a fee or whatever and that's how government makes a profit. Same as bitcoin and other crypto, if I get in at 100, and get out at 200, then the extra 100 dollars which is the profit gets taxed and that's it, if I get in at 100 and get out at 80, I made a loss and they charge me nothing.

If I get in, and never get out then I am never taxed, because it is unrealized at that moment. This is the most perfect way and we are very happy about it. Since I earn mine and not "profit" from trading, mine is charged like income which is not really that well and I am paying higher amount but it is fine so far, as long as it is legal and regulated.

Right! and just like fiat which is also a tool which could be used in all sorts of doings neither ethical or not either legal or illegal it wont matter.The one who should really be blamed off is into those people

who do make use of it on the bad or wrong way and on which once the community would able to see it then those common bad impressions would really come out which it isnt really surprising.

Due to anonymity and decentralized aspects then it isnt really that surprising that you would really be thinking off this way because you are really able to do so if you do wanted.
This is why government doesnt really like Bitcoin or crypto as a whole in the first place.

This is the fact, anyone entering the cryptocurrency space to evade tax will do so one way or the other. I am paying my taxes for the income i generate from this space and hence i am not worried about future issues regarding this.

This is a problem that is faced by many people in multiple countries, the government is leeching us and we as an end user is not getting the benefits of paying our taxes. But still we are paying them to avoid severe punishment in the form of fines and other terms.

You need to understand one simple idea - Bitcoin is just a tool, with some unique characteristics that distinguish it from many similar tools. But this does not mean that he was created only for the bad. He is a TOOL - and it all depends on what we will do to them. It's like a hammer - you can hammer in nails, carry out construction work, or you can attack a person and threaten his life, or go and break windows in a neighboring house. It all depends on which hands the hammer is in. The same is with bitcoin - yes, it is a "convenient" tool for hiding income or withdrawing illegal profits. Therefore, the state system wants to put in order the rules for its use.

I guess the point is in that question, why even try to avoid taxes?! If someone thinks there are good reasons for him to avoid taxes that person will do it anyway, doesn't matter which fiat/crypto currency he is using!
Well, I am not against paying taxes, I am paying a lot of them... but the government should return those taxes to us people, which is not exactly what is happening in my country! So I am not paying taxes on crypto, there aren't clear rules about crypto, and I am not running to them for explanations!

I wonder why I should embrace Bitcoin solely because I want to evade taxes. That to me is a lame idea. I embrace Bitcoin and Crypto at large because of the enormous potential I see in it.

Why to even try to avoid taxes? One's country provides oneself with so much privileges and hence I guess be it Bitcoin or just fiat, taxes are our duty, and also Bitcoin and most other crypto-currencies are created with missions like anonymity, decentralization etc., so I guess crypto is already a boon for us for all those perks it gives to us and we should be thankful for those only already yeah, if the government is taking huge taxes, I guess then surely some protests should be done

It is relatively difficult to draw the line whether what you receive is taxable or not, given that cryptocurrencies (or BTC to be specific) is taxable in the first place.

Unlike income, streams of revenues that are particularly categorized under the laws are taxable, cryptocurrencies have a league on their own in which a law must be passed in order for them to be taxable. Currently, most countries are silent on the status of BTC in their country (e.g. they chose to tolerate it, etc.). But once there is no law declaring it to be taxable, then I guess it is unfair to say that BTC allows tax evaders.

Actually, it depends on how the regulation is. I mean if in a country there is no specific regulation for paying crypto taxes, then why do we pay taxes? For example in my country, there are no specific laws for crypto taxes, the laws only stated monthly income tax. This tax is applied for people who have a minimum monthly income for a certain amount of money, if our monthly income is less than the criteria, we don't need to pay the tax. So, in this matter, we only pay monthly income tax, even we got the income from crypto. But it depends on how much the income, the tax is only applied for an individual who regularly gets a quite big amount of money. If we only get $100-$300 for a month, it is surely free of tax.

Permissible?

In general sense it wont be possible and they shouldn't impose mandatory tax if there are situations that it could be possibly permissible or sudden change of decision.We know on how taxes
is crucial thing on someones economy and its not really that they could just simply ignore.

For Bitcoin then it is a tool which other people do convert out their assets just for that some reason which is on evading tax but this isn't only the thing on where
we could make out some cons of bitcoin since we know that its pro's do really outweighs it.

It is not even about "being able to" stay away from paying taxes. You could literally just do all cash moves as well on p2p platforms like localbitcoins and similar places. That way you will pay with cash, get some money on your wallet, who knows who owns that wallet? Then you do cash deal with someone else to turn that back into fiat and keep doing that and nobody could charge you a tax unless you do it with some IRS worker.

In the long run we are talking about something that is bad for the nation, you could say that "$9 out of my $10 tax goes to corruption" and in many nations you would be right, but imagine if nobody paid, no police, no firefighters, no roads, no schools, no hospitals, basically NOTHING that government does would be able to, no welfare as well. It would be dream come true for a hardcore liberal capitalist, but everyone else would be losing money left and right and you would bankrupt quicker than a ball hitting the floor.

Tax evasion can only be permissible if the government is not serious and sincere about it, if they are sincere they won't allow for cheating but you may not know if those evading tax payment are people who are friends with government people and those who pay are usually the people not having connection in government. The whole of it goes to corruption. How a government is corrupt matters in the policy of government, implementation is key in government policy.

As much as taxes are unfair, we're obliged to pay them or face serious consequences in the long term. It's your duty as a responsible citizen to pay income taxes on all of your crypto trades and/or transactions. Bitcoin is not anonymous as many thought it would be, so it's easier for governments to track tax evaders on-chain. Most (if not all) centralized exchanges force KYC/AML, so evading taxes is practically impossible to achieve. The only way governments can't track tax evaders is if the person himself trades crypto through decentralized exchanges or performs all of his transactions through a privacy coin like Monero. But even so, you can risk yourself getting caught as not everything is perfect.

There are many countries which still hasn't recognized Bitcoin as legal tender, so there's a long road ahead before crypto/Blockchain tech grows deep into the mainstream. As long as there's cooperation between governments and citizens themselves, nothing will stop Bitcoin into becoming a global cryptocurrency used by the masses. Just my thoughts

I think this differs from one country to another. There are countries who declared bitcoin and crypto illegal in general which results to banning them altogether. There are also countries that are open with cryptocurrency, however, the government doesn't laid down all the rules and regulations yet which causes the tax to be not fully established in that state. So  in result, the people who are into crypto isn't paying the supposed tax they have to pay because in the first place, there isn't one implemented yet for everyone.

Meanwhile, there are also countries who are embracing crypto with all the rules and regulations already imposed properly. The governing and implementation of the leaders play a great role in the part of citizens paying their rightful taxes back to the state. If there isn't a clear law made specifically for that, then expect that there will be discrepancies in the way they would pay their taxes. Also expect some people to disregard their obligations to pay tax because of unorganized rules. Hence, it's really better to let the government think thoroughly ahead to bring significant services to the citizens through the crypto exchangers and platforms. That way, the latter would do their part for the economy as well.

In some other cases, there are really people who try to evade taxes mainly because it is so high and they are thinking of what the amount could do if only they won't be turn over to the authorities. In other terms, some people tend to be greedy. Let's all face it. We have tax obligations as a citizen of our country. We must do our part to pay it correctly. Otherwise, there will be no enough funding for important projects of the government. As much as we don't want to give them the tax because they just steal it anyways, let's just hope for the best and do our part. Remember, the tax you are obligated to pay is just balanced, fair, and just on the amount you are currently earning. Don't be too greedy. Let's not be like other politicians who are corrupt.

Exactly. It's much easier for governments to tax traders and/or investors through centralized exchanges since KYC is enforced. But the same cannot be said about decentralized exchanges and P2P trading platforms. I wouldn't say "Bitcoin allows tax evaders" simply because every transaction is highly visible on the Blockchain. There are some surveillance/analytics companies working for the government (Chainalysis) in order to help identify malicious actors on chain. So if tax evaders really wanted to do their thing, they'd simply switch to a privacy coin (like Monero) for complete transaction obfuscation.

I wouldn't recommend anyone doing this, since this goes against the law. You can face fines or jail time if you evade taxes. As long as you cooperate with the government, you'll have nothing to worry about. Just my opinion

I gave you 15 merits for this. I almost never give that many merits. But I like what you are saying.

The Bureau of Internal Revenue (or whatever you call that in your respective country) will likely target and audit individuals who are living the luxurious life. Like here in the Philippines, there’s one guy who was featured by a TV news network that he bought two houses because of Axie Infinity, so he was being paid attention to pay his correct taxes.

There are influencer couples like JaMill who also bragged their riches on Youtube. And when the BIR is announcing about influencers who needs to pay taxes, they immediately shut off their Youtube account, but it wasn’t enough for the tax collectors to chase after them. So they have no choice but to pay taxes and eventually restored their Youtube account.

So yes if we had BTC and other cryptocurrencies with big value, it’s better to stay low key and be humble. Just don’t be a luxurious person. At least a decent looking person would do but with big crypto portfolio.

That's exactly my point: money is not taxable. which is why the IRS typified cryptocurrency as "property", to be able to basically steal from American taxpayers. Any half witted attorney should have a field day with that.
Even in the US (which, as far as I know, has a very "stiff" tax policy), money is not taxed. Income is, and so is value added, but if you have the money and don't move it, nobody bothers you. And even then, you only pay taxes on your in country activity, which cryptocurrency is not. I do agree you should pay taxes if you use cryptocurrency to purchase something in the US, because, again, there's a whole apparatus set up to protect you. But in the case of crypto you're on your own.

I mean, don't get me wrong: I'm in Argentina, and we don't pay cryptocurrency taxes in here, so that stuff doesn't affect me. But it kinda sucks seeing people getting robbed like that by their own government.

I believe that sometimes it is the amount of tax that the government wants people to pay that leads to people trying to evade paying their taxes. In places where the government has required the people to pay an insanely high tax, the people would always try to steer from it completely.

Although I do know that there are people who would always avoid paying their tax no matter how small or big it is. And doing so with Bitcoin made it seem like it is quite possible but at the end of the day, most of the people who tries to do it ends up being caught by the government and also has to pay the taxes. And like you have said, lavishing to the extent that makes the government question their sources is part of what makes them get caught.

There has been talk of imposing crypto taxes in my country recently, but I haven't read any further about how that decision was formulated in recent days. So I think this is going to be an important thing for us to think about in the future.

Almost all countries seem to have corrupt governments and it's the same with me. It is true that taxes are a huge income in many countries where taxes allow certain individuals to commit corruption while they are working in the department. Every citizen must comply with tax regulation regardless of whether there are cases of corruption or not because it is an obligation that we must pay to the state. Sometimes it seems unfair, and this has allowed tax evasion to be practiced by some.