Crypto can erode tax base, Russia’s tax boss says

Silberman

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Quote from: Kakmakr on November 22, 2021, 01:00:23 PM

They are full of sh1t..... How has the rest of the world figured out to pay Capital Gains on their Bitcoin profits? ....but not Russia. Roll Eyes

The Blockchain forensic tools that some companies has developed is so powerful that it is actually beneficial to these tax collectors, because tax evaders can be identified and fined on top of the taxes that they owe the government. Russia has some of the most talented IT Specialists in the world.... but they claim this nonsense?

They just looking for excuses to eliminate the competition for their local fiat currency. (Russian ruble)

They are preparing the ground in order to eventually ban cryptocurrencies and do the same we saw at China, it is not really surprising if we think about it, after all Russia and China are pretty much moving in the same overall direction so it makes sense that if China banned cryptocurrencies the same is going to happen at Russia, and they are going to use that excuse to eventually ban it, still it seems they are unaware that by doing that people will vote with their feet and their money and could leave for another country with better regulations like El Salvador.

dark1234

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taxes for crypto are still a trend of conversation in many countries because their implementation is very difficult considering the decentralized crypto system but I do not deny the concerns of many countries which are not only on taxes as a source of state income but there are other things such as money laundering and other criminal acts. the country must be wise how the application of taxes and crypto can be monitored by users but not block the system that has been running in the digital cryptocurrency world

Wexnident

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I don't take loans, ask for sig if I ever do.

It's not like people have NOT been evading their taxes prior to the existence of crypto though, no? Don't get me wrong, it's not like I'm against tax since it is something that helps the country in its development but the system itself is the problem and not the medium that we have. The issue with crypto and tax is more of an issue with how it's not properly regulated so far, so it seems like it's doing something bad when in reality, it's just the system not knowing where to actually place crypto.

avikz

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Russia's concern is genuine but from the personal income tax perspective. But if Russia agrees to classify crypto assets as an asset rather than keeping the confusion alive, then it wouldn't be a big issue.

But overall if you see the crypto market and it's decentralized structure, it is indeed a reason for worry for the government. Not just from tax perspective but also from the money laundering perspective.

So not just Russia, rather many other countries will impose KYC linked classifications for crypto assets sooner than later. Various other rules are on the way! Governments cannot turn blind at this juncture.

Hydrogen

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If everyone follows through on their campaign promises.

Residents from china and russia which promise brutal taxes and regulation on bitcoin and cryptocurrencies. Could immigrate to places like el salvador which promise 0% capital gains taxes on crypto assets.

To be honest, russia has not been the same place ever since they got hit with economic sanctions. The entire landscape of their russia's political architecture shifted dramatically after sanctions were imposed. Russia was forced to rely more upon china and money laundering ops post sanctions. Which gave china and money launderers greater control and influence over russia's power base.

Don't forget that russia was pro bitcoin only years in the past. Russia proposed supporting local crypto mining operations with nuclear energy. Today they have flipped a sharp 180 degrees to a point where they're following in the footsteps of china.

Kakmakr

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They are full of sh1t..... How has the rest of the world figured out to pay Capital Gains on their Bitcoin profits? ....but not Russia. Roll Eyes

The Blockchain forensic tools that some companies has developed is so powerful that it is actually beneficial to these tax collectors, because tax evaders can be identified and fined on top of the taxes that they owe the government. Russia has some of the most talented IT Specialists in the world.... but they claim this nonsense?

They just looking for excuses to eliminate the competition for their local fiat currency. (Russian ruble)

fiulpro

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Tax is essential undoubtedly the only reason we need reformation in tax department is because *people generally pay are paying taxes with their income clearly insufficient to sustain themselves, but the richest people generally , through different aspects always avoid the taxes, which no one ever talks about, making it harder for everyone*
- Cryptocurrencies might also help making the whole system more transparent, more transparency means better judgement, it would also mean that people would be able to challenge the government if they see something wrong happening.
This would shatter the politicians and the governmental authorities, the huge idea behind blockchain reforming the government and the financial system might be on the way.

Silberman

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Quote from: Leviathan.007 on November 22, 2021, 08:30:20 AM

I can't wait to see that day, the tax guys and the political men who always try to fill the government's pockets with tax money from hard-working people are surly against the idea of a decentralized economic system and that's not surprising to see they are worried about crypto but soon after more people get into bitcoin and crypto the know that they cannot control over people funds.

In principle I am not against the concept of taxes as I think some monetary contribution is necessary for the establishment of a civilized society, the problem is that once in power governments want even more power and one of their forms are taxes, the taxes are simply too high so they can have more money to steal or to implement policies which have nothing to do with the original purpose of having a centralized government, so bitcoin is nothing more but a response to that and they will have to accept this new reality

hugeblack

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Controlling money will not be easy as banks do now, as they have full access to your money and give it to you after you set their conditions, but it also does not mean true decentralization.
Taxes will be imposed on digital currencies, and tracking methods will become more intelligent, so the average user will not be able to hide his identity, and the increase in trading volumes up to 10 trillion will make Bitcoin prices stable in the medium and short term, and therefore the poor will not benefit much from it.

The main point is how to use the tax system to pay the minimum and fair.

Ozero

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In Russia, in general, there is some kind of abnormal legislation regarding cryptocurrency. Almost everything is prohibited, but taxes are required to be paid. Now they are claiming that cryptocurrencies can undermine their tax system. Wondering how cryptocurrency can do this? Is it something that defies their usual control? Then that's good. Let this system break down as quickly as possible.

Leviathan.007

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Quote

The Russian Federal Taxation Service (FTS) is actively monitoring the cryptocurrency market to prevent tax evasion, FTS head Daniil Egorov said.
Cryptocurrencies can potentially cause “significant erosion” to Russia’s tax base, Egorov argued in a Monday interview with the local publication RBC.
But cryptocurrency transactions are still traceable and should be reported, the official said, adding that the FTS is ready to deploy automated tracking systems to process big data volumes.
“When you get into the digital space, you still leave a trail somewhere. And it’s a matter of time before this trail is identified,” Egorov declared.
The official also noted that the FTS is now coming up with ways of responding to crypto tax evasion practices as the authority looks to curb such activity rather than just to identify it. “We would like to find solutions that shut down a problem as a phenomenon rather than just identifying actions by a specific player,” Egorov added.
The Russian State Duma approved a bill on cryptocurrency taxation in the first reading in February 2021, requiring residents to report crypto transactions of a total amount exceeding $7,800 per year. In order to move forward with the second reading, lawmakers decided to assign a responsible committee, the State Duma Committee on Budget and Taxes, in mid-October.
According to Sergei Khitrov, founder of the Russian cryptocurrency event Blockchain Life, Russian crypto businesses could potentially generate as much as $4 billion worth of taxes per year. According to him, the local crypto community has so far demonstrated a “complete failure” to understand how to pay taxes on crypto.
The news comes as American lawmakers fight back against changes to tax reporting rules for crypto transactions over $10,000 in the newly passed infrastructure bill. The bill was initially approved by the Senate in August, which was met with a proposal for a compromise amendment by a group of six senators, including pro-Bitcoin (BTC) Senator Cynthia Lummis

Source: https://cointelegraph.com/news/crypto-can-erode-tax-base-russia-s-tax-boss-says

I can't wait to see that day, the tax guys and the political men who always try to fill the government's pockets with tax money from hard-working people are surly against the idea of a decentralized economic system and that's not surprising to see they are worried about crypto but soon after more people get into bitcoin and crypto the know that they cannot control over people funds.

Topic: Crypto can erode tax base, Russia’s tax boss says (Read 86 times)