Bitcoin and paying Tax - page 5. | Bitcointalksearch.org

bitjoin

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Quote from: newcoins1978 on October 03, 2016, 04:19:33 PM

Like every source of income, bitcoin is taxed. Either directly by VAT or indirectly with your yearly income sheet. There is no way you can run from taxes.
Every governement uses tax as a milk cow to generate income for (sometimes, bogus expenses).

Not yet you cant avoid but do you really think that will last? Ask yourself what keeps the gov going and you should find the answer is we have no better options as yet.

wikenpp

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Quote from: newcoins1978 on October 03, 2016, 04:19:33 PM

Like every source of income, bitcoin is taxed. Either directly by VAT or indirectly with your yearly income sheet. There is no way you can run from taxes.
Every governement uses tax as a milk cow to generate income for (sometimes, bogus expenses).

True you will eventually have to pay tax about your income and yes bitcoin is an form of income. If you don't tell them you will perhaps end up paying high fines. And remember even if you haven't sold your coins to fiat, even then it is income. My advice would be to play it safe and add your bitcoin revenue/income/worth to your tax return.

newcoins1978

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Like every source of income, bitcoin is taxed. Either directly by VAT or indirectly with your yearly income sheet. There is no way you can run from taxes.
Every governement uses tax as a milk cow to generate income for (sometimes, bogus expenses).

deisik

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Quote from: RodeoX on October 03, 2016, 02:39:41 PM

Quote from: deisik on October 03, 2016, 02:24:45 PM

Quote from: RodeoX on October 03, 2016, 02:13:09 PM

Quote from: pooya87 on October 02, 2016, 03:51:18 AM

the government is going to take his taxes even with force, it doesn't matter what currency you are using for your business. as long as you are running a business in a country you have to abide by law, you can't just say i stop paying taxes because i am using bitcoin!

I totally agree. The idea of tax free bitcoin is completely false. I am not aware of any law on the planet that allows for a loophole when using crypto-currency. The tools which will allow anyone to audit the blockchain are soon to be usable by governments around the world. They will simply throw you in jail for not paying. Asking if bitcoins are taxable is exactly the same question as "Is money taxable"? Yes, yes it most certainly is.

You will be greatly disappointed. There is no such law, but if Bitcoin itself is not allowed (or recognized as an asset), you can't possibly impose taxes on the income obtained from using it, since any operation with it will be considered as illegal. You simply can't levy taxes on something illegal, since that would instantly make it legitimate. For example, you can't collect taxes from income earned by drug trafficking or child pornography. But if it is not banned either, you essentially get your "loophole"...

And I'm not just theorizing about what might happen, since this is exactly the case with Bitcoin in Russia, as I have already said

I guess that is a loophole, in the same way that robbing a bank is a tax loophole.
You have me wondering about the taxation on weed in Washington state. The state collects tax on it even though it is illegal according to U.S. law. Pretty weird when you think about it.

Robbing a bank is a criminal offense, even in Russia. Holding Bitcoin is not, at least so far. See the difference? Also, I'm utterly curious why you are trying to confuse the readers. Weed is legal in Washington state, you can openly buy it if you are over 21 and are going to consume it in the state. So taxing weed is quite in line with it being legal...

Quote

As with alcohol, only those 21 and older can purchase recreational weed. Out of state residents are allowed to purchase pot, but it must be consumed in Washington. Marijuana remains illegal in neighboring states. And plan on paying with cash. While some legal establishments may be able to take debit cards, none can accept credit cards because of federal banking regulations

Think better next time

RodeoX

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Quote from: deisik on October 03, 2016, 02:24:45 PM

Quote from: RodeoX on October 03, 2016, 02:13:09 PM

Quote from: pooya87 on October 02, 2016, 03:51:18 AM

the government is going to take his taxes even with force, it doesn't matter what currency you are using for your business. as long as you are running a business in a country you have to abide by law, you can't just say i stop paying taxes because i am using bitcoin!

I totally agree. The idea of tax free bitcoin is completely false. I am not aware of any law on the planet that allows for a loophole when using crypto-currency. The tools which will allow anyone to audit the blockchain are soon to be usable by governments around the world. They will simply throw you in jail for not paying. Asking if bitcoins are taxable is exactly the same question as "Is money taxable"? Yes, yes it most certainly is.

You will be greatly disappointed. There is no such law, but if Bitcoin itself is not allowed (or recognized as an asset), you can't possibly impose taxes on the income obtained from using it, since any operation with it will be considered as illegal. You simply can't levy taxes on something illegal, since that would instantly make it legitimate. For example, you can't collect taxes from income earned by drug trafficking or child pornography. But if it is not banned either, you essentially get your "loophole"...

And I'm not just theorizing about what might happen, since this is exactly the case with Bitcoin in Russia, as I have already said

I guess that is a loophole, in the same way that robbing a bank is a tax loophole.
You have me wondering about the taxation on weed in Washington state. The state collects tax on it even though it is illegal according to U.S. law. Pretty weird when you think about it.

deisik

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Quote from: RodeoX on October 03, 2016, 02:13:09 PM

Quote from: pooya87 on October 02, 2016, 03:51:18 AM

the government is going to take his taxes even with force, it doesn't matter what currency you are using for your business. as long as you are running a business in a country you have to abide by law, you can't just say i stop paying taxes because i am using bitcoin!

I totally agree. The idea of tax free bitcoin is completely false. I am not aware of any law on the planet that allows for a loophole when using crypto-currency. The tools which will allow anyone to audit the blockchain are soon to be usable by governments around the world. They will simply throw you in jail for not paying. Asking if bitcoins are taxable is exactly the same question as "Is money taxable"? Yes, yes it most certainly is.

You will be greatly disappointed. There is no such law, but if Bitcoin itself is not allowed (or recognized as an asset), you can't possibly impose taxes on the income obtained from using it, since any operation with it will be considered as illegal. You simply can't levy taxes on something illegal, since that would instantly make it legitimate. For example, you can't collect taxes from income earned by drug trafficking or child pornography. But if it is not banned either, you essentially get your "loophole"...

And I'm not just theorizing about what might happen, since this is exactly the case with Bitcoin in Russia, as I have already said

RodeoX

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The revolution will be monetized!

Quote from: pooya87 on October 02, 2016, 03:51:18 AM

the government is going to take his taxes even with force, it doesn't matter what currency you are using for your business. as long as you are running a business in a country you have to abide by law, you can't just say i stop paying taxes because i am using bitcoin!

I totally agree. The idea of tax free bitcoin is completely false. I am not aware of any law on the planet that allows for a loophole when using crypto-currency. The tools which will allow anyone to audit the blockchain are soon to be usable by governments around the world. They will simply throw you in jail for not paying. Asking if bitcoins are taxable is exactly the same question as "Is money taxable"? Yes, yes it most certainly is.

deisik

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Quote from: ekoice on October 03, 2016, 01:57:45 PM

Quote from: tyz on October 02, 2016, 05:04:37 AM

In some countries like Germany Bitcoin is already acknowledged as an asset. That means if you transfer Bitcoin to fiat money in a legal way then you have to pay taxes. However, if you buy or get Bitcoins and hold it at least one year, then it is completely tax-free.

Other Countries like Spain want to go a different way. They plan to tax the miners, too.

I heard that in italy, they have decided to tax bitcoin earnings.See in future, it is the only way that governments can adapt.Either try to ban bitcoin and when it seems impossible, just try to impose tax on bitcoin earnings.

As I understand it, in the majority of jurisdictions you (the government) don't need to think up something to levy taxes on Bitcoin earnings. If you get profits, you should pay an income tax (under whatever name), and it doesn't matter whether you get this income from Bitcoin operations or something else. It is your duty, responsibility and obligation. At least, this is what governments think. On the other hand, if Bitcoin itself is in gray zone (that is, neither directly banned nor officially allowed), you can't probably be prosecuted for wilful tax evasion as such...

This is what has been the case in Russia, for example

ekoice

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Quote from: tyz on October 02, 2016, 05:04:37 AM

In some countries like Germany Bitcoin is already acknowledged as an asset. That means if you transfer Bitcoin to fiat money in a legal way then you have to pay taxes. However, if you buy or get Bitcoins and hold it at least one year, then it is completely tax-free.

Other Countries like Spain want to go a different way. They plan to tax the miners, too.

I heard that in italy, they have decided to tax bitcoin earnings.See in future, it is the only way that governments can adapt.Either try to ban bitcoin and when it seems impossible, just try to impose tax on bitcoin earnings.

virusasog

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Quote from: botany on October 02, 2016, 11:43:03 AM

Once Bitcoin usage becomes widespread, the tracking mechanisms will increase too.
Plus most tax is collected from corporations, who wouldn't want to be on the wrong side of the law.

However we need to pay a fees for bitcoin. As I know its a kind of the taxes. As you said tac seems to collected for the each and every product in our country. Bitcoin adoption will change the tax setup to the different way.

deisik

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Quote from: kolos on October 03, 2016, 10:35:02 AM

The government can put sniffers on Tor exits and find bitcoin owners and force them to pay tax.

It doesn't make much sense trying to catch all bitcoiners that are looking for tax evasion. First of all, going after every bitcoiner would require a lot of resources, thereby rendering any such attempt prohibitively expensive. Second, catching a few individuals seeking tax evasion big-time and publicly punishing them would allegedly make more sense, but it still boils down to the question of expenses vs potential benefits vs public opinion risks...

And last but not least, every government is interested that their citizens paid taxes voluntarily, willingly, and by their own free choice

kolos

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The government can put sniffers on Tor exits and find bitcoin owners and force them to pay tax.

varyspro

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Quote from: clickerz on October 02, 2016, 12:07:47 PM

Quote from: KingdomHearts on October 02, 2016, 05:14:00 AM

Bitcoin do not pay tax because bitcoin is not approved by any government and i think if bitcoin approve by government then i am sure it will be pay tax on bitcoin and then i am sure we can be use bitcoin as payment method.

Yes as of now, most government does not consider bitcoin as a money. But government is doing anything to regulate bitcoin and finally taxed it. As of now, the effects of bitcoin is not felt the those government but when most transaction is on bitcoin, the government is losing and they will do all they can to get hold and control bitcoin.

Bitkoints already caused great damage to the state authorities. If he will become even more popular, the government will take measures. And the only thing it can do - is to impose a tax

deisik

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Quote from: lowcarbjc on October 02, 2016, 03:14:21 AM

I was wondering, if crypto-currency takes off, and a large percentage of the world use it and then decide to stop declaring all income and stop pay taxes, how will governments build roads, support public schools etc? Won't this action raise taxes for the few that pays it and cause total havoc?

It seems that you should first ask yourself whether there will be a government at all if (when) Bitcoin (or some other cryptocurrency) takes off for real. I think government (something centralized) and Bitcoin (something decentralized) are mutually exclusive. Gold was decentralized too, but some claim that it got in the way of government and was replaced with centralized money (fiat), though this is debatable. On the other hand, if government got decentralized somehow, the issue of maintaining social infrastructure could be decentralized as well...

In this way, the problem of taxes and other involuntary payments might go away on its own

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Quote from: KingdomHearts on October 02, 2016, 05:14:00 AM

Bitcoin do not pay tax because bitcoin is not approved by any government and i think if bitcoin approve by government then i am sure it will be pay tax on bitcoin and then i am sure we can be use bitcoin as payment method.

Yes as of now, most government does not consider bitcoin as a money. But government is doing anything to regulate bitcoin and finally taxed it. As of now, the effects of bitcoin is not felt the those government but when most transaction is on bitcoin, the government is losing and they will do all they can to get hold and control bitcoin.

botany

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Once Bitcoin usage becomes widespread, the tracking mechanisms will increase too.
Plus most tax is collected from corporations, who wouldn't want to be on the wrong side of the law.

eduaro66

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The first attempts at establishing cryptocurrency taxes already. And this trend scares me. In Spain miners introduced a tax of 47%

Ayers

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government will have an hard time dealing with everyone that is using bitcoin without exchanging to fiat, it's very hard for them to tax bitcoin that were never exchanged, so you are safe if you don't dump like i do, otherwise you need to declare yes, that is a granted

bitjoin

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As i see it in order for government to mount a long term serious tax forcing attack on crypto there would need to be the same or more % of people who agree to keep government how it is. I think the public will choose free trade this century.

cocos

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They will tax the mining machines. They can find who bought mining machines the last decade. Also they can put a tax chip into the hardware.

Topic: Bitcoin and paying Tax - page 5. (Read 3912 times)