Topic: Bitcoin v Tax (Read 1783 times)
This is another way they want to demonize Bitcoin, with or without Bitcoin some people will still find way to evade tax, those exchanges they are after now are all registered and are paying their tax to Government and since they have decided to see Bitcoin as an asset rather than currency, this is a two way thing here, those that bought Bitcoin at the top have still not made profit from their investment, so you can't pay tax on loss
Bitcoin can't kill the taxes. Taxes are in the price of anything we can buy, except something out of law (like paying rent to smb without any official papers which is very common in my country). Taxes.. they won't kill bitcoin as well but they can harm its ideology. I think the governments will try to regulate btc via taxation.
If we buy legal stuff in the market, we already pay taxes when we use bitcoins.
The question is if posessing it will be taxed or if selling it will be taxed.
I am relatively sure that posessing bitcoins won't be taxed because it's just too hard to prove who ownes what.
But I think not too long in the future selling bitcoins will be taxed nearly everywhere on the planet.
The question is if posessing it will be taxed or if selling it will be taxed.
I am relatively sure that posessing bitcoins won't be taxed because it's just too hard to prove who ownes what.
But I think not too long in the future selling bitcoins will be taxed nearly everywhere on the planet.
If bitcoins are regulated, then there could be a possibility of paying taxes on it else like gold, bitcoins could be treated as an investment and we would not have to pay any taxes. It would just be some holdings but I don't know how long will bitcoin keep sustaining its value as it drops and rises so often that people would pefer buying gold and shares or even property rather than bitcoins to save taxes.
They won't be losing much in the countries with VAT. They will tax shops and their suppliers, who use fiat. Bitcoiners will buy goods and services and pay their taxes.
The only problems governments will face is what to do with income tax, which will be almost impossible to impose on people transacting in Bitcoin.
Should we worry? No, income tax is very unjust and combined with benefits promotes laziness, unemployment, and keeps people in poverty.
The only problems governments will face is what to do with income tax, which will be almost impossible to impose on people transacting in Bitcoin.
Should we worry? No, income tax is very unjust and combined with benefits promotes laziness, unemployment, and keeps people in poverty.
Will Bitcoin kill Tax or will governments find a way to regulate Bitcoin so that we can continue paying Tax?
they will regulate it eventually and start taking tax from every business and service that uses it but it takes time and bitcoin needs to get a lot bigger so that the tax man sees a big potential of earning money there to even act on it.
and who cares you can still continue using bitcoin and stay anonymous if you know what to do.
they can't also regulate mining, they can not know how many coin a farm is producing, they see only the electricity usage if they try to find out, with your ESP(energy service provider), i think with bitcoin there is really a chance to evade tax in one way or another, and government already realized this
and also, what about regulating coin that are 100% anonymous, like monero zcash, zclassic? if those coin will be large in the future, it will be a pain for them to tax, they really can't do anything
and also, what about regulating coin that are 100% anonymous, like monero zcash, zclassic? if those coin will be large in the future, it will be a pain for them to tax, they really can't do anything
In most countries tax is not put on Bitcoin itself but on exchange transactions, trading. The pressure for regulation is bigger and bigger because of anti money laundering regulations, tax evasions, illegal markets etc. But regulation doesn't necessary have to be the bad thing for Bitcoin and its users so we don't have to be afraid of it.
The possible things that government will do is to impose taxes on the way of exchanges and other merchants who accepts bitcoin on their businesses since its the only way to get money from those bitcoin users but getting directly into bitcoin its not really possible since bitcoin is decentralized and they cant able to access the system. 
How long do you think, will Bitcoin be allowed to go unregulated, if nobody paid taxes whilst using it? The government has to take their cut, so
we should all just pay the taxes and move on with our lives. We can chose not to pay the taxes and then bend over to strict regulations or
even a full blanket ban from the governments.... OR we can pay the taxes and have a little bit of freedom, like we now have with cash.
we should all just pay the taxes and move on with our lives. We can chose not to pay the taxes and then bend over to strict regulations or
even a full blanket ban from the governments.... OR we can pay the taxes and have a little bit of freedom, like we now have with cash.
maybe you need to learn about taxes.
EG when someone travels the world and gets paid in many foreign currencies. when they hold shares in a company.
then apply that same logic about say holdings of no dollars eg having offshore accounts while being american will clarify things for you
But we could exchange cash for coins and vice versa off the grid and don't raise suspicion by buying awfully expensive stuff, right? We could keep the fiat under the mattress and use it to buy expensive vacations once a year for example. Will this raise a red flag as well? I suppose the problem is when we commit to digital fiat purchases which leave trails while doing cash purchases is kinda less inconspicuous isn't it?
In most countries tax is not put on Bitcoin itself but on exchange transactions, trading. The pressure for regulation is bigger and bigger because of anti money laundering regulations, tax evasions, illegal markets etc. But regulation doesn't necessary have to be the bad thing for Bitcoin and its users so we don't have to be afraid of it.
How long do you think, will Bitcoin be allowed to go unregulated, if nobody paid taxes whilst using it? The government has to take their cut, so
we should all just pay the taxes and move on with our lives. We can chose not to pay the taxes and then bend over to strict regulations or
even a full blanket ban from the governments.... OR we can pay the taxes and have a little bit of freedom, like we now have with cash.
we should all just pay the taxes and move on with our lives. We can chose not to pay the taxes and then bend over to strict regulations or
even a full blanket ban from the governments.... OR we can pay the taxes and have a little bit of freedom, like we now have with cash.
well for sure government won't give up, the government will find all the way to regulate bitcoin and put tax in bitcoin, the government will try to regulate bitcoin and if it is failed then the government will banned bitcoin, and I think the government is going to win the game and in the future we will have to pay tax for using bitcoin
they cant tax bitcoin.
however they can:
see your fiat withdrawals. and if they are valued above what they have logged as your income. they will question it
see what car/house/assets you have, and if assets are valued above what they have logged as your income. they will question it
so when you 'cash out'
so when a disgruntled/jealous neighbour questions your new car and you have the feeling they will 'grass' you in.
expect to get a tax form through the post and pay tax on the fiat you got.
however they can:
see your fiat withdrawals. and if they are valued above what they have logged as your income. they will question it
see what car/house/assets you have, and if assets are valued above what they have logged as your income. they will question it
so when you 'cash out'
so when a disgruntled/jealous neighbour questions your new car and you have the feeling they will 'grass' you in.
expect to get a tax form through the post and pay tax on the fiat you got.
Governments could kill Bitcoin with taxes 
Every single online Bitcoin exchange would require some kind of an ID to process withdrawals. There is no way escaping this audit process unless you try to exchange your coins or cash in person. You meet likeminded people looking to sell or buy coins or cash. You meet up in the real world and trade your goods under the table. Your government won't know about your secret business and can't tax you for your profit. Peer-to-peer underground exchanges will thrive.
I need to supply my ID and Tax papers to be able to withdraw my coins from one of the shop that sells digital items Every single online Bitcoin exchange would require some kind of an ID to process withdrawals. There is no way escaping this audit process unless you try to exchange your coins or cash in person. You meet likeminded people looking to sell or buy coins or cash. You meet up in the real world and trade your goods under the table. Your government won't know about your secret business and can't tax you for your profit. Peer-to-peer underground exchanges will thrive.
It's better to exchange your coin by using localbitcoins, that way no tax can be applied
Unless, the governments caught Localbitcoins and ask them to have their users to put an ID card as a mandatory requirement (Please no)
I think government will find alternative solutions to levy tax because banning bitcoin completely is not possible. I heard a theory from one member that government can levy taxes on miners; it will be an interesting case to watch it will definitely affect the whole scenario as miners will charge those taxes to users. Let’s see how it will work if implemented till then enjoy tax free world (but till then please pay your taxes).
I heard today that $36 trillion is held offshore to avoid tax.
Bitcoin obviously isn't a big part of that market as it is only has a market cap of $12.4 billion. (0.0344%)
Lets hope people really start using bitcoin to avoid tax, then the price could easily be 100x higher!
Bitcoin obviously isn't a big part of that market as it is only has a market cap of $12.4 billion. (0.0344%)
Lets hope people really start using bitcoin to avoid tax, then the price could easily be 100x higher!
Bitcoin without tax will exist only in communism. There will be no taxes and banks will take your money for save with the same percent that they take when they give you a credit.
Will Bitcoin kill Tax or will governments find a way to regulate Bitcoin so that we can continue paying Tax?
Case : 1 Government will regulate the flow of bitcoins or put a ban on all the other existing crypto currencies.Case : 2 Government will start a altcoin of their own and establish a set of regulations which needs to be followed by anyone planning to develop their own altcoins.
Case : 3 Whatever initiative taken by government will apply Taxation rules on the commodities served in exchange of those coins.
Case : 4 Nothing better,government wouldn't care because they know bitcoin,in it's current state can never replace banks or paper currencies.
Will Bitcoin kill Tax or will governments find a way to regulate Bitcoin so that we can continue paying Tax?
If bitcoins adoption and awareness will arise all over the world then it would really be a great thread on each economic state on almost countries on which bitcoin is present and also people do really love to evade taxes and thats reality and if they found out about the goodness of bitcoin then it will surely switch to bitcoin and will evade tax and also if that time comes government will surely make some actions to impose strictly taxes and its already starting. 
Most of the users here bypass taxation with the help of bitcoin. Also most consider it an easy way to escape taxation, as it can act as a value storing token holding huge amount. In future opposition arises from different government just because of the tax issue. It can be overcome by certain regulations but that won't be cent percent effective.
Governments could kill Bitcoin with taxes Every single online Bitcoin exchange would require some kind of an ID to process withdrawals. There is no way escaping this audit process unless you try to exchange your coins or cash in person. You meet likeminded people looking to sell or buy coins or cash. You meet up in the real world and trade your goods under the table. Your government won't know about your secret business and can't tax you for your profit. Peer-to-peer underground exchanges will thrive.
Every single online Bitcoin exchange would require some kind of an ID to process withdrawals. There is no way escaping this audit process unless you try to exchange your coins or cash in person. You meet likeminded people looking to sell or buy coins or cash. You meet up in the real world and trade your goods under the table. Your government won't know about your secret business and can't tax you for your profit. Peer-to-peer underground exchanges will thrive. Will Bitcoin kill Tax or will governments find a way to regulate Bitcoin so that we can continue paying Tax?
The goverment has regulated our local exchanger that's why either deposit's fee or withdrawal's fee are big, as far as i know if you earn income in bitcoin, your income is taxable and this would be subject to income tax, it applied for mining activity and spending bitcoin, all those activities are taxable.However as long as you hold your bitcoin on your wallet is not taxable, i personally deal with bitcoinguy to avoid the fee in my opinion is too big for me since they're not paying fees for the government. So, The answer is "yes" you can kill tax in using bitcoin with your own way and the government also can regulate it.
From where they (governments) will gather the data ? logically from exchanges . Isn't Bitcoin meant to be decentralized ? the answer should be "yes" . Then , It's peoples fault If they are using centralized exchanges where they have to provide their real photos and ID scans while there is the ability to avoid all that and trade somewhere else without providing the least of your personal information's .
In other words , If they tax it (which they probably will and It's just a matter of time till they do) , It will be peoples fault only.
this makes no sense. do you pay taxes if you pay in cash? yes, you do! do you give them some kind of information if about yourself if you pay in cash? no! so how is it that you pay taxes?In other words , If they tax it (which they probably will and It's just a matter of time till they do) , It will be peoples fault only.
well, you pay them to your merchant and he pays them for you. he has to keep book of his bought and sold items and the according taxes. otherwise he would act illegal and would lose his license. this is the same with every currency. the only way to avoid taxes is to keep this off the books, but then you will have no guarantee on the item, the merchant will have a hard time to explain where the goods are if he bought them but never sold one. also it will not be fun if you get caught.
From where they (governments) will gather the data ? logically from exchanges . Isn't Bitcoin meant to be decentralized ? the answer should be "yes" . Then , It's peoples fault If they are using centralized exchanges where they have to provide their real photos and ID scans while there is the ability to avoid all that and trade somewhere else without providing the least of your personal information's .
In other words , If they tax it (which they probably will and It's just a matter of time till they do) , It will be peoples fault only.
In other words , If they tax it (which they probably will and It's just a matter of time till they do) , It will be peoples fault only.
you have to pay taxes with bitcoin just as you do know. if you buy something you pay a price x + taxes. this is the same in bitcoin. you just pay the full sum only with the difference that it is in bitcoin. it is then the sellers job to pay the taxes to the government just like he would do in the native currency. not paying taxes just because it is bitcoin does not make it a legal move. you could stop paying taxes in your currency, but this would be illegal. and if they find out, then you are in trouble whether you handle bitcoin or any other currency.
Think that will be issue in next years to come most likely it will be for this IRS raid on coinbase user with intentions on creating some kind of DB for them to see how many US citizens are using this to not pay tax or just to see how many then using this service in global.
And if some country/government dont recognize bitcoin as payment then there is not tax
And if some country/government dont recognize bitcoin as payment then there is not tax
Will Bitcoin kill Tax or will governments find a way to regulate Bitcoin so that we can continue paying Tax?
Jump to: