British Authorities (HMRC )Seek Data from Crypto Exchanges - page 2.

Lucius

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Quote from: btcwish1 on August 08, 2019, 08:13:22 AM

But question remains, how will HMRC know if some one is selling or not? Some one can transfer coins from coinbase to hardwre wallet or send some one else and take cash from them and so on. How to prove that some one is not selling?

If you sell on exchange from which HMRC get information then they will know, but if you buy on Coinbase (UK), and then transfer coins to hardware wallet, hold coins for some time and sell to your friend for fiat, then how they can prove anything? It is not easy to prove that coins have changed ownership, they can just be moved from one address to another.

You need to pay tax if any profit is realized, but it depends from country to country. If you never sell crypto on one of those three exchange offices, then they only can see that you buy crypto and send it to some other address. I doubt they will follow a trail of money on blockchain, but the dots could easily be connected if you buy one exchange, transfer coins to other exchange and then sell for fiat.

btcwish1

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Quote from: btcwish1 on August 08, 2019, 04:33:41 AM

If you only buy any crypto, and never sell it for profit, why you should pay any tax? The article clearly states that

Quote from: https://www.coindesk.com/british-tax-authority-seeks-customer-data-from-crypto-exchanges-in-search-of-tax-evaders

“HMRC is looking to work with exchanges when it comes to finding information on people who have been buying and selling crypto. I think they will only go back a couple of years, two or three years,” said one industry insider.

But question remains, how will HMRC know if some one is selling or not? Some one can transfer coins from coinbase to hardwre wallet or send some one else and take cash from them and so on. How to prove that some one is not selling?

Lucius

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Quote from: btcwish1 on August 08, 2019, 04:33:41 AM

If you simply purchased crypto in an exchange for example coinbase and then moved the crypto to a hardware wallet etc, do you need to pay taxes? If no, how do you convince taxman that you simply transfered from one account to another of yours rather than selling? Huh

If you only buy any crypto, and never sell it for profit, why you should pay any tax? The article clearly states that :

Quote from: https://www.coindesk.com/british-tax-authority-seeks-customer-data-from-crypto-exchanges-in-search-of-tax-evaders

“HMRC is looking to work with exchanges when it comes to finding information on people who have been buying and selling crypto. I think they will only go back a couple of years, two or three years,” said one industry insider.

They will mainly targeting people who hold crypto / fiat on exchange, others who withdraw fiat to their bank accounts are already known to tax office since they can get such info much easier from banks. Looking for data that is 2-3 years old makes sense, they need to draw a line somewhere and reduce the amount of work to a reasonable extent.

Slow death

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and how HM Revenue & Customs intends to know the thousands of customers in coinbase. eToro and CEX.IO who paid tax and who did not pay tax? And what saddens me the most is that they rush to collect tax but don't rush to create laws that make it easier for people to create licensed exchanges whith support of government and bank. and laws that protect people who buy crypto.

Haunebu

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Decentralized exchanges are becoming more popular due to these reasons and this is why I always recommend LocalBitcoins primarily to stay anonymous and not worry too much about these things(Unless you fill in your KYC).

First world countries like USA, UK etc are efficiently regulating the crypto environment in this manner, but I cannot the same about third world countries like India etc. They have no clue as to how to properly regulate crypto and instead focus on banning it completely.

eternalgloom

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Quote from: Jet Cash on August 08, 2019, 05:03:52 AM

They could be opening a big can of worms, as I believe a lot of so called traders are actually losing money

Yeah, that's the correct term to describe it, especially after reading this bit:

Quote

I think they will only go back a couple of years, two or three years,” said one industry insider.

I mean, "only" going back a couple of years? Some people could actually owe thousands of pounds in back-taxes.
All while regulations weren't exactly clear a couple of years ago.

PaulBrooks

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Quote from: Jet Cash on August 08, 2019, 05:03:52 AM

They could be opening a big can of worms, as I believe a lot of so called traders are actually losing money

And as a result, taxes will be paid only by a small number of traders that receive a minimum profit. As a result, this whole idea will be more expensive for UK Authorities

So if the government decides to take taxes on Bitcoin, are we getting back a tax refund in case of losses?
I don't think so, the government is always looking to extract money from the citizens and they call it a tax.

Lizzylove1

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How about the losses I incurred from buying a coin at the peak only to dump and I loss heavily. This is why Dex would have been a good way to go but pressure are mounting for KYC compliance dex, as a result, Idex has been pushed to carrying out Kyc for its traders.

Jet Cash

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They could be opening a big can of worms, as I believe a lot of so called traders are actually losing money

btcwish1

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Following USA now UK HMRC contacted exchanges for users data. They contacted Coinbase, eToro and CEX.IO.

are you currently paying taxes for your crypto in UK? If you simply purchased crypto in an exchange for example coinbase and then moved the crypto to a hardware wallet etc, do you need to pay taxes? If no, how do you convince taxman that you simply transfered from one account to another of yours rather than selling? Huh

Thanks

Source: https://www.coindesk.com/british-tax-authority-seeks-customer-data-from-crypto-exchanges-in-search-of-tax-evaders

Topic: British Authorities (HMRC )Seek Data from Crypto Exchanges - page 2. (Read 336 times)