Topic: Bitcoin allows tax evaders, Please pay attention.... - page 2. (Read 487 times)

This is the situation most of us are in right now but if "I do not want to pay my taxes because I believe my government is corrupt" would be an acceptable reason to not pay taxes, then nobody in the world would ever pay taxes, even if they believe it is not corrupt, they will just say it is corrupt and they will avoid it. What you should do when you believe that your government is corrupt is not stop paying taxes but start being more active in the world of politics.

I did that once upon a time 2+ years ago, I joined a party and both gave feedback on how to get better and how to root out corruption within my own party but also showed resistance towards ruling party and basically worked on trying to end corruption. Obviously me alone is not enough, but if ALL good people around the world got into politics all at once suddenly, we would have a lot less worrisome corruption. That's how you stop corruption, not by stop paying taxes.

This has a point, but how about those employees who are paid a minimum wage? Consider that they are devoting nearly a day of their wage to paying taxes. Yes, as citizens, we should pay taxes, but what if the government is corrupt and we have no idea where our money is going? Now, the current administration, I can honestly say that there are no corruptions and that I have seen the government's projects, unlike in the past. But, whether we like it or not, we must pay taxes.

Tax evaders are mostly the people that has greedy behavior meaning they will not pay taxes for them to have something to spend for their desires, meaning it is only few of them knows how to treat it right.
They will Evade and then they will spend, bringing them to worst scenario .. that is the same thing for me that why need to evade taxes when this is just small part of your income? and at least you are not violating anything .

1. Anonymity
2. Decentralized
3. Investment returns

These are the most basic stuffs on why people do really mind off on dealing or recognizing bitcoins existence.No matter what we do
it cant really be avoided for us to get those benefits but of course there would be always some cons to that.
Doesnt matter though as long it could give us gains then this is where people matter the most.

Definitely true, if it wasn't for the anonymity cryptocurrencies offer, I'd have them deposited in a bank. The truth is, you're provided with immense capabilities in terms of what options you have for your money, without needing to declare that to anyone.

For instance, I've deposited most of my crypto on staking platforms, achieving an APY of 30% on average, while a bank , would provide you with 1-2% at most.

But cant really be denied that we are here mostly just because of being anonymous or being decentralized and non paying of taxes is someones choice and thats why government do really hate up that much on crypto
because they couldnt able to trace up into those people who do try to avoid taxes thats why they do focused out on centralized platform instead.

Im heavily agreeing on that cant directly be avoided because once we do deal up with this then expect that you could really get that kind of benefit or thing on letting yourself hide into the shadows.

If you are really that mindful in terms of paying tax then you could do it voluntarily or doesnt need for you to hide out.

You are making this way bigger than what it actually is, are there some people out there using cryptocurrencies that are not paying their due taxes? Of course, but the number of those people is very small compared to the number of people avoiding taxes by the use of cash or by using complex business structures and offshore banking.

The main issue that governments have with bitcoin is that it breaks the monopoly they had to print their own currencies, people finally have an option, and if given the chance they will select the best alternative out of the two, and with governments printing as much money as they want then it is obvious something like bitcoin in which this is not possible becomes more and more attractive as time passes.

Why shouldn't cryptocurrency be taxed? It's still money, that can be brought to the "offline world" and be used. I also own a decent amount of money in crypto, which I'd rather not have it taxed and will try to avoid it if possible. While I get the point of cryptocurrencies being decentralised and the freedom that comes with them, but we simply can't directly avoid it. We're living under a government with laws, which require you to declare any earnings you have.

Can anybody please explain to me why cryptocurrency should be taxed?

I know this sounds ridiculous, but for the life of me I couldn't find anybody to give me an answer that would make sense to that question.
I'm not talking about adding "creative tags" for it, with the sole purpose of stealing people's money. I'm talking about a real, legally plausible explanation for it.
As I understand it, taxes are, pretty much, the price citizens have to pay for the "privilege" ( ) of having a "state", or a bunch of people working at providing services for them and whatnot. So how is investing or trading in cryptocurrencies, that are mostly unregulated and offer no protection whatsoever to the investor/trader, a taxable activity?
I mean, if you buy an orange, there's a number of laws, and a whole apparatus destined to make sure you get an orange. If you trade in bonds, or etf's. the SEC is there to regulate the market. What's the excuse, in the case of cryptocurrencies?

Cash is, and will forever be the tool for tax evaders. Even if Bitcoin became the dominant currency, cash if still in existence would be used by criminals since there's no recorded record of it exchanging hands, unlike Bitcoin.

This isn't true in the slightest. If the governments wanted to brush up on their tax evasion detection via cryptocurrency it would be much easier for them than cash. Cash is literally the way to tax evade if you really wanted too since there's no public ledger. If you tax evade via cryptocurrnecy you're doing it knowingly leaving a trace. The criticism that Bitcoin gets for tax evasion is unjust. Its the people who use it, and cash that are tax evading, not Bitcoin or cash. I declare what I earn with Bitcoin just as I do with fiat, there's no difference since tax has to be declared by the person with the assets or via an accountant of theirs. The government expects that the individual declares it, Bitcoin or cash is not responsible for an individuals actions.

Cryptocurrency while sometimes being a little confusing, and adds a little more complexity to declaring the tax, well at least in the earlier days. Still, is expected to be declared by the government. It's the person who decides to declare it or not.

I've never really understood the need to tax evade especially when your stinking rich already, although I must say the tax over here in the UK at least goes to something I'm quite passionate about e.g the National Health Service (NHS which I like that my tax contributes to keeping it running.

One of the biggest problems of Bitcoin and all other crypto currencies is the problem of tax evasion. All countries know about the person's assets, but this is not possible when crypto money is involved. If there were no such situations, states would not stay away from bitcoin or other crypto currencies. I don't know how to overcome this.

It is not immoral to take advantage of the deductions given to you by the traditional tax system. Anyone that decides to pay more taxes than they're owed is a fool and deserves to lose their money. You pay taxes to the government, tell me -- do you view the governmental body as being capable of fiscal responsibility? When has any modern government ever been able to manage their financial system?No, that's why Bitcoin exists in the first place. Corporations avoid taxes because they generally reinvest their profits into the business.

Government targets crypto for tax purposes more than they target billionaires though, so if that isn't an indictment at how cozy politicians are with the elites, I don't know what is.

I think the final decision on whether or not to pay taxes on profits in cryptocurrency depends on how high the tax rate is and how difficult it is to practically determine the amount to be paid. In my country, it is planned to adopt a law that provides that individuals will be charged a tax of five percent, which is calculated as the difference between the sold cryptocurrency and the cost of purchasing it. With such a law, it makes no sense to evade taxes. But in some states the tax can be 20-40 percent and here, of course, there is something to think about.

While there are some people that have a problem with paying taxes I think the majority agree that something like it is necessary to keep our society running, the problem they have is that the taxes are so high that you are effectively a slave to the government for months each year of your life just to pay the government, and what is worse is that the governments are never happy and always want more taxes, so I think that there will be some people that will use bitcoin in that way denying governments from resources they need, forcing them to reduce their size.

Why even evade the taxes on bitcoin? We live in a century where we are free to do anything under human rights. You can live the way you want with only leaving behind the illegal stuff.

At least we are in the kingly rule where we have to pay taxes above our income or above our property evaluations. Plus you are free to regain the taxes at your retirement through pension schemes offered by government.

So why even bother paying taxes on the bitcoin income? If you are in bitcoin then most of them are here to earn profits, make some handsome money and live a dreamy life. It is not a tool to evade the taxes! Its a way to transact with unlimited amount of money, more or less in real time. If you are buying or selling then you should not be worried if it is legal. Just pay the nominal taxes and be happy.

But some people are just arrogant and just want to show and publish in their social media channels that they are into crypto. But it is their problem because they are opening themselves to government scrutiny. So if you want to keep your crypto life hidden, then, don't divulge anything in public. It is better to keep it to yourself or your immediate family. Also, if you are dealing with local crypto exchange, and usually, you need to verify your identity, are you already paying some type of tax as the local exchange is already paying tax to the government? I am still not clear on this matter.

Who the hell would really tend to announce or declare their income on crypto if government wont able to to trace or know into those people who do engage with crypto.

Its not surprising that this would be the main issue in talks about tax evasion and money laundering is always attached with crypto and these are the
main reason on why most government wont accept this one.

Its true that it does have its pros and cons but lets just focus now for its benefits.

That is the big difference in stocks and people like Elon and Jeff not paying too much taxes. They keep claiming that anytime they sell stocks, they are paying a huge amount of tax, sometimes as high as 50% and they claim that's good enough. Let's check it shall we? Elon paid a shit ton of taxes this year because he sold stocks, options that expired and some other stuff, billions upon billions of dollars, that's good right? Well he now worths over 300 billion dollars, at the start of the year that was under 200 billion dollars, less than half of what he worths now.

It means, even though he paid billions of dollars worth of taxes, he still gained 2x profit in a single year. What does that tell you? Does that mean he pays good enough taxes and he should not be asked for more? Or does that tell you that unrealized profits could be taxed and used for other stuff?

Holding itself isn't tax evasion, however, if I were to withdraw such amount of money, I'd have to declare where and how I obtained them. In the best case scenario, I'd have to pay approximately 20% in taxes, which I'd rather not. At least here, there isn't a solid taxation policy, however, any kind of deposit from a foreign exchange would trigger alarm bells.

I agree, but who do you think will announce your wallet in public? Here in our country, crypto is becoming more popular, and the government is following suit. A branch of the government here in country says that if you earn money online or in crypto, you must declare it in their office and pay tax, which leads people to believe that they should not declare that they hold a crypto and should remain anonymous online. This is a type of tax evasion that is extremely difficult to detect.