Topic: Can we avoid crypto taxes with other users assistance? (Read 305 times)

Glad to see you understand my point.

By the definition, tax avoidance is legal while tax evasion is illegal, but both of them are using a loopholes from the tax laws.

Imagine if someone make $10 Million per year by freelancing which make he get taxed on the highest income tax bracket i.e. 37%. He want to declare his income as a corporate income which make him need to pay only for 21%.

Here's the illustration:

Bob (millionaire): Hello Mr. Jack, I want to declare my personal income as corporate income, how to do this?
Jack (accountant): Mr. Bob, why you want to do that? I will report you to tax officer!

This is incorrect as far as Spain is concerned. The person who has done so thinks that in Spain taxes on cryptocurrency gains are counted in the general income tax base, which, depending on the region, is around 50% at its maximum rate. This is the case for gambling winnings, for example. However, gains from cryptocurrency trading are declared as capital income, which is taxed according to the following brackets:

an idea that people can work together to achieve a way of legal tax avoidance

change the DEX software
instead of being an exchange.. call it a loan agreement (a change of GUI wording.. not of coded protocol)

heres what i mean
instead of you handing someone your coin and they hand you fiat (tax trigger)
change the WORDING
change it to 'locking up collateral for a loan' where the terms are to take the coin in exchange for a fiat loan

then when you deposit the coin into escrow(DEX) it uses the software to create a document displaying a loan agreement and settlement paperwork. and the receipt of fiat. *

the reality is still swapping coin for fiat. but the WORDING becomes a loan thats settled at delivery of fiat

remember loans are tax free.. wink wink

* i am not suggesting setting up actual loan companies with corporate charters and stupid small print that allows the fiat giver to chase the coin giver forever.. im talking about DEX software creating a receipt for the trade. that is written in very basic laymans with no clauses, a personal loan where that loan was performed and settled in the instant that the fiat was given and the coin was unlocked from the multisig/smartcontract escrow where the loan is settled and complete. no small print, no clauses.

yep a simple change from a receipt of exchange reworded to a settled loan. becomes legal paper proof of a loan that is not taxible

There are countries that have imposed taxes which means they haven't banned the crypto but there are countries like mine that have banned the crypto so it means they didn't impose any taxes on it as they have banned it legally. But people are still into crypto and not paying taxes. My opinion in this for the country is they should make crypto legal and put some tax. That way it will be helpful for them as well.

And talking about your question, I also had the same one for a long time, but I assume in that case you have to trust other party living in another country where taxes are low or no taxes, with your money. Even if the other person is your relative or your brother, the availability of funds won't be at same level that they will be if in your possession.

I am not a legal advisor so I only shared my opinion not a legal advise thanks.

The only taxes we pay in my country is stamp duty on every credit received by citizens irrespective of the source, and normal Personal Income Tax (PIT) for those officially working in reputable organizations that do declare taxes of their employees. There is nothing like crypto taxes here. There was a process in place to regulate cryptocurrency to be able to fix appropriate taxes on cryptocurrency but seems that bill did not see the light of the day because our politicians are heavily invested in cryptocurrency using proxies. I actually feel scared seeing that some countries taxes cryptocurrency as high as 45%. It make me wonder how crypto users cope in those countries.

It's hard to believe but unfortunately the numbers mentioned in that table are true, and it is on each of these countie's law and crypto regulations.

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You didn't read the title or the whole topic ? Your answer seem to be about taxes in general for every citizen, while my topic here is only limited to crypto, when someone tries to withdraw or trade his crypto for fiat, in some regions as mentioned in the topic, they have to pay up to 50% as tax fees. However, there are some other countries where they don't have clear rules for crypto or they don't even track your translations which means they don't tax your assets in a way or another.

I don't think there's a country on planet earth that isn't a tax paying nation, as taxes is one of the major means for IGR for almost every country so the place of tax is something that can't be taken away in any country, the difference is in the fact that some countries have got a very comprehensive taxing system as compared to others especially when making comparison between developing and already developed countries with their taxing system and pattern then the difference becomes very clear. For countries where their taxation isn't comprehensive it sometimes feels like they are have some who do not pay tax and some actually are able to bypass taxation.

Because of their system of taxation these area could ha e possible way of bypassing tax payment but for countries where they have got a comprehensive taxation system I don't any of the ways used to bypass it in other countries will work you just have to maintain your taxing system or look for a way to appeal for a cheeper tax payment rather.

Tax evasion is a crime, and it should be taken into account when thinking about ways of not paying taxes. So, the way I see it, there are several options here.
One is to pay taxes that your country requires. After all, as the table shows, the taxation is usually progressive, so if your crypto income is low, it's unlikely that your tax rate will be high. Another option is to officially register one's business in a tax haven (for example, in El Salvador), but I think it's better to do things like that in person, instead of relying on other people. Finally, in some countries, tax evasion may not be a serious crime and may not actually be prosecuted, unless it's a part of a case with a different and bigger crime (like theft, bribery, scamming people, etc). I know such places exist because I live in such a country, where tax authorities are very weak and paying taxes is de facto voluntary rather than obligatory.

I even can't believe in that numbers, how someone are ready to pay more than half of profit to gov? Good that cash still exsist

The problem is how to find a trustworthy accountant? And where do you rely to ensure 100% that that accountant will not betray you or try to harm you when they know you intend to evade taxes?

I don't know whether trying to avoid taxes in your country is common and considered the right action. But I know it's against the law because the government won't like this, so once we intend to do things that may be illegal, it's best not to let a second person know. Because there is no guarantee that they will keep your secret. Not to mention whether bitcoin is legal in your country or not, because if it is illegal then your crime is even worse.

In pur country, theres what we call tax avoidance which is legal. In the Philippines, tax avoidance and accountants can be a big help with that. They know the ins and outs of the tax system and can guide you on how to legally minimize your tax bill. Just remember that tax avoidance is about using the rules to your advantage, while tax evasion is a big no-no and can get you in serious trouble. So if you want to keep more of your hard-earned money in your pocket, it's worth consulting with a trusted accountant who can steer you in the right direction

Every tax law has a loophole. Do you really think that these big giant monster companies pay 100% of their taxes? No, they find loopholes and use loopholes. To be honest, loopholes are created for such companies to not pay taxes but overall laws apply to average Joe and governments expect that average Joe will pay as he is supposed to pay and he doesn't have enough power to use loopholes.
There are many things that you can do to avoid crypto taxes but you have to know the law of your country at first.

In some countries if you hold your coins for specific period of times, you don't have to pay crypto taxes. Also, if no one knows that you own crypto, you can pretty much sell them without anyone knowing that you owned a one. For example, you can use p2p decentralized exchanges. You can also marry to a woman who lives in a country where taxes are rarely paid and crypto is untaxed. Options are limitless.

It is true that some countries are taxing crypto investors quite high and they claim that it is a way to discourage people from getting involved in crypto. But they were wrong to introduce that policy because investors will find every way to avoid taxes because the tax rate is unacceptably high. But there are also some investors who are using bitcoin and cryptocurrency to avoid taxes, they have no intention of paying even the smallest tax to the government. I'm pretty sure the majority of investors here don't want to pay taxes regardless of the amount. That is also the reason many governments do not like bitcoin or cryptocurrency.

I don't understand with people who advising to seek an accountant, you're risking yourself if you do that because you will tell anything to your accountant, then this accountant can attack you whenever they want. And... what about you fall to the trap of a tax officer that pretends to be a public accountant?

That being said, if you want to hide something, make sure you can hide it from anyone else.

It's really difficult and a lot of risk is involved as one can use get it exchanged with friends or family members living in tax free nations but how will you get it in your bank or cash in hand as fiat? Even they have to transfer it through an international payment modes which involves tax and if crosses a lot you have to show the proof of that incoming transaction to the government. Either keep hodling in BTC until there are any changes in the rules or pay taxes, there are lot of processes involved to get it changed through foreign resources but involves risk and multiple processes and can be used for huge amount not for smaller transactions.

I this things are been over hyped in many of these countries. Why on earth would I have to pay tax reaching up to 56%?
This is crazy and it shows that the government do not want anyone to be Bitcoin investor. If I am leaving in any of these countries, I would always look for a way to bypass paying such an heavy tax to the government. The tax is far too much and this can make an investor rethinks and halt the idea of investing in Bitcoin. We need to be wise and jump out of such region with heavy tax for us to live well as crypto investors.

Smart techniques and keeping whats yours are fine, but we're talking about playing by the rules.

Working with pals in tax-friendly areas? Though clever, its complicated. Remember that each country's tax regulations are complex and easy to get entangled in. A tax haven partner may raise flags faster than a rocket at my rally.

Listen carefully because this is where it gets good: focus on legitimate strategies. Consider legal crypto-friendly tax structures. Malta and Puerto Rico have welcomed crypto fans with cheaper taxes without any tricks.

Yes, you can maximize your taxes. Above board, always. Research the regulations, hire a crypto-savvy accountant, and make informed decisions. Avoiding taxes isnt enough - you also need to make sensible, lawful investments.

The problem is that the government that's inherently corrupt will almost always try to keep their hands on as much money as possible, remember that tax is their lifeblood and if the people stop paying them, they can't function and for those corrupt people in the government, they'll end up with nothing to pocket, that's why they try to squeeze you even more for the taxes because the budget that they've got is piling up because they overspend on some to purposefully pocket the surplus amount of money. As much as I want to say that I like normal working class people to be getting all the money that they want without paying the taxes, the problem is that the public works are going to suffer the most and you don't want to be crossing a nearly collapsing bridge because they used a substandard cement to finish that bridge. In regards to avoiding taxes, there's probably a way to do that but I'm not going to elaborate on that so people don't get any ideas.

Go for legitimate ways of reducing or avoiding your tax, that one might have just a small effect on you or may not have any effect at all but when you prefer to use illegal means to get off tax, you will end up to be discovered by the law enforcement and can face a very bad consequences. In some country that crypto laws are not taken seriously by the government, tax on crypto investors are not taken very serious on small investors or even whales that are investing on a low key. I could be a whale buying big amount of Bitcoin secretly and not body will notice and demand for tax. In a country, there are always some lapses in some systems and if you discover those lapses in the tax system, you can skip tax and go off the hook.

You should hire a professional accountant to legally reduce your taxes. This is the only way to pay less tax without committing a serious crime. Sending someone your Bitcoin just to avoid taxes is a form of tax evasion since you will need to explain that expenses especially if the amount is big. This kind of move is questionable on audit by the IRS or same agency on your country.

I’m a tax payer myself due to my business and everything should be documented to avoid evading tax because this is a serious crime. Crypto tax evasion is much easier to track since there’s a blockchain records while your transactions involves CEX.