Bitcoin tax in Canada! | Bitcointalksearch.org

canada

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Quote from: Este Nuno on May 18, 2013, 01:52:18 PM

Quote from: canada on May 18, 2013, 01:50:36 PM

hello. please send all your taxes to this bitcoin address: 1NZjvHEmkHSUtStozJGvoRiGQG175SZMYk

see? that's not so hard, now is it. thank you for being a good little citizen.

And what if I am due a refund? Will you pay me in bitcoin? Tongue

nope, paying out in deflating fiat currency. cause that's how i roll

Este Nuno

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amarha

Quote from: canada on May 18, 2013, 01:50:36 PM

hello. please send all your taxes to this bitcoin address: 1NZjvHEmkHSUtStozJGvoRiGQG175SZMYk

see? that's not so hard, now is it. thank you for being a good little citizen.

And what if I am due a refund? Will you pay me in bitcoin? Tongue

canada

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hello. please send all your taxes to this bitcoin address: 1NZjvHEmkHSUtStozJGvoRiGQG175SZMYk

see? that's not so hard, now is it?

cbeast

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Let's talk governance, lipstick, and pigs.

It won't be long before property tax assessors are auditing your mmo.

Este Nuno

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amarha

Why would you expect anything else?

arfeniel

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Seriously, what is so hard about paying taxes. Just do it!

If you want to pay less taxes, you need to elect politicians who care more about the people and the future of the country that their reelection. And also, cut in services.

Evo

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They'd most likely only be able to tax businesses bitcoins.

Fiyasko

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Okey Dokey Lokey

Quote from: elessdai on May 01, 2013, 07:07:42 PM

Seems like a good news for black market and illegal stuff.

A guy get 50000$ from a drug deal, he just have to claim bitcoin transfer, he pay tax and everything is legal.

I really don't know how is this going to work ...

That right there, Is fucking hillarious you could turn your dirty money clean by running it through the bank, LAWL

elessdai

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Seems like a good news for black market and illegal stuff.

A guy get 50000$ from a drug deal, he just have to claim bitcoin transfer, he pay tax and everything is legal.

I really don't know how is this going to work ...

firefop

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Quote from: TomUnderSea on May 01, 2013, 05:00:48 PM

I don't know what the problem is.

I always pay every tax that I owe promptly and without complaint.

To say anything else would give the IRS probable cause to investigate me, right?

LoL - exactly the reason to use offshore financial institutions to handle some portion of your btc <> fiat transactions. Anyone know the legallity of income earned outside of the US? My understanding of this issue says that unless you're transporting fiat into the country it wouldn't fall under income tax - but that good transported in may require you to pay tariffs on them.

TomUnderSea

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I don't know what the problem is.

I always pay every tax that I owe promptly and without complaint.

To say anything else would give the IRS probable cause to investigate me, right?

Rygon

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FYI, in the US, the IRS rules are more or less the same. I asked my tax guy (surprisingly, I wasn't the first), and he said the IRS would definitely enforce taxes on fiat gains from buying and selling BTC. Additionally, trading BTC for goods (no fiat in the mix), would be treated as a barter exchange, and any gains on the fiat value of the goods would be considered taxable. For example, if someone buys 10 BTC at $5 apiece ($50 total), then gives those BTC to an online retailer in exchange for a computer that normally sells for $1000, the person who bought/sold BTC would have a taxable gain of $950.

For obvious reasons, almost no one reports gains from bartering. However, if the IRS became aware of the transaction and wanted to spend the resources to audit and prosecute, they would most likely be successful. It doesn't matter whether you agree that it's right/wrong, or even the proper interpretation of the law (the IRS rules are not always consistent with the law). Looking at other similar situations, the IRS would win in the courtroom, which is really the only thing that matters.

nobbynobbynoob

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Annuit cœptis humanae libertas

Quote from: Kaiji on May 01, 2013, 08:20:58 AM

What does OTC mean?

Over The Counter, as in in person face to face.

Quote

So basically they can tax you only if you convert bitcoins to fiat currency.

Income or capital-gains tax, yes. But legit businesses accepting payments in BTC normally do their accounting in fiat and pay their GST or whatever as before. Sure, you could do private business "under the table" tax free (illegal for businesses required to register for GST) with bitcoin, but this is done thousandsfold more often with ca$h already, so bitcoin really isn't a tax-evasion mechanism per se. It does offer one big advantage of portability, though. You don't have to declare bitcoin to customs (and with the brainwallet option, it would be unenforceable even if you did!), something that makes it a better "hidden" store of value than even overseas numbered investment accounts.

Disclaimer: IANAL and there is no hint of formal tax or legal advice anywhere in this post.

Kaiji

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Hoist the Colours

Quote from: nobbynobbynoob on May 01, 2013, 08:05:11 AM

Quote from: Kaiji on May 01, 2013, 07:32:21 AM

Maybe someone with legal know how can find some loop hole so we can avoid paying.

If you want to sell BTC and dump serious amounts of fiat into your Canadian bank account, I don't think there is any loophole. You gotta pay the tax if it's due.

If you don't convert BTC to fiat, or you do it only OTC... your tax liability might be a bit lower. Grin

But not zero if legitimate businesses where you spend your BTC pass on GST costs to you. It's difficult to avoid all taxes!

What does OTC mean? So basically they can tax you only if you convert bitcoins to fiat currency.

nobbynobbynoob

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Annuit cœptis humanae libertas

Quote from: Kaiji on May 01, 2013, 07:32:21 AM

Maybe someone with legal know how can find some loop hole so we can avoid paying.

If you want to sell BTC and dump serious amounts of fiat into your Canadian bank account, I don't think there is any loophole. You gotta pay the tax if it's due.

If you don't convert BTC to fiat, or you do it only OTC... your tax liability might be a bit lower. Grin

But not zero if legitimate businesses where you spend your BTC pass on GST costs to you. It's difficult to avoid all taxes!

agentbluescreen

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Quote from: plutuswd on April 30, 2013, 04:37:05 PM

What if CRA got smart and started to troll the block chain and applied a little network analysis to it? Forensic accountants are accustomed to ferreting out tax cheats and are used to their schemes of sending money from one place to the next.

All the steel and concrete in the cores of tall skyscrapers would all be "melting" at once from wayward flying-pork barbecue accidents.

Kaiji

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Hoist the Colours

I wish they would tax only considerable amounts of profits made from bitcoins such as any amount above $10000. They tax everything and everybody there is no way they will ignore bitcoiners. Better to pay now than have all the hassle and legal problems later on.
Maybe someone with legal know how can find some loop hole so we can avoid paying.

plutuswd

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Quote from: Fiyasko on April 29, 2013, 12:18:22 PM

I am a Canadian Citizen, and I say that this is Compleate and utter Bullshit.
Taxing a digital good? Come Tax my fucking videogame items while your trying at it, if i "suddenly" get 10k into my bank account, ITS NONE OF YOUR FUCKING BUSINESS WHERE I GOT THAT MONEY FROM, and if you Fucking Ask Where It Came From, im switching banks
Fuck You Revenue Canada
Bitcoins are already SELF TAXED by the people who use bitcoins and the system itself!

he he he.

Free range slaves; they like to think they are free. We let them speak all they want, but when it comes time to pay up, the GoC has ways to enforce compliance.

plutuswd

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Quote from: fivemileshigh on April 30, 2013, 04:20:50 PM

I wonder if they can force cavirtex.com to open their books and track everyone that way. Everyone that used cavirtex.com that is.

They probably could.

Not only that but they could force the issue by requiring cavirtex to charge GST on the service fee. Just like currency swap places at the air port do.

plutuswd

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Quote from: rayfloyd on April 29, 2013, 10:45:10 AM

Quote from: agentbluescreen on April 29, 2013, 10:12:23 AM

Quote from: rayfloyd on April 29, 2013, 09:06:35 AM

So how do we cash out now? If need be obviously.

This is totally un-documentable BS, since nobody knows what you are doing on Kijiji or whatever with your friends and Bitcoins.

[snip]

Can an exchange know you weren't cashing in or buying them for somebody else?

use your wallets and transfers at all those exchanges you can, often, problem solved...

Yes that whole taxing bitcoin thing is BS, and it is going to be difficult for them to catch it but I mean if for example I have a steady income of 500$ per week and in 2-3 years when bitcoins are worth more, I cash out some of it to partially pay a car let's say. Wouldn't the CRA be like hummm that's weird he just got 20k deposited and it's signed CaVirtex... Wouldn't they come after me?

What if CRA got smart and started to troll the block chain and applied a little network analysis to it? Forensic accountants are accustomed to ferreting out tax cheats and are used to their schemes of sending money from one place to the next.

Topic: Bitcoin tax in Canada! (Read 3335 times)