Cryptocurrency usage will boost economy or make it worst ? - page 12.

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Quote from: Wysi on October 27, 2019, 06:03:11 AM

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

Your thinking way too 1 sided. There is no way where you just avoid tax when you use cryptocurrencies to pay, or sell your goods or services for cryptocurrencies, it's still money and it will be taxed.

A cryptocurrency is still a form of money, it's similar to other investments that hold value, and if you got paid in gold, or bonds for example, those are still able to be taxed - it's impossible to avoid taxes in our world...

Crypto-currencies will be able to boost the income though, we will have a lot more freedom with money and it's an entirely new market sector where people are able to start new businesses and find new jobs - really expanding our markets.

7788bitcoin

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Quote from: Ailmand on October 27, 2019, 05:45:12 PM

Just before big companies can use or accept cryptocurrency government approval or acceptance must take first place. So, I guess b that time crypto will be taxable or it will be treated the same as investment which is taxable.

I am not sure from which country you are from as you are not aware of people giving tax for the profits earned from bitcoin and even if there is no rules and regulation regarding bitcoin in your country you are bound to pay your taxes for the profits you earn and there is no way around it as you will get into trouble if you are earning a good amount of money through crypto trading.

@OP cryptocurrency will give freedom to the people to trade internationally and hence it will boost the economy in that aspect.

Ailmand

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Just before big companies can use or accept cryptocurrency government approval or acceptance must take first place. So, I guess b that time crypto will be taxable or it will be treated the same as investment which is taxable.

abeecrypto

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I have thought about this. I think that even with crypto, there will still be usage of the Fiat. And through Fiat, tax can still be applied on Crypto. Probably not directly. Government wouldn’t allow tax to be affected because of the use of crypto. In the end, they will find a way to work with crypto, so that the taxes can keep coming in.

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Quote from: Wysi on October 27, 2019, 06:03:11 AM

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

The country will be able to counter that by legalizing and regulating cryptos so that with every transactions the government will be able to make money with the purchase and sale of every cryptocurrency and with the proceeds from that, it's going to be bring economic boost to the country.

Harlot

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Trust me with all the accountants and taxing authorities we have in the government these big corporations you are talking about won't be flying anyone under their radars. If they are still actively hunting down small time tax evasions and money laundering activities what more if they are a big billion dollar corporation doing criminal activities like this one. That big amount of money they earn won't go undetected even if they make it to small variations of amount they will still see a pattern or at least spot the difference on their financial accou

Pearls Before Swine

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Using crypto for purchases shouldn't affect any country's tax revenue as long as a payment processor is used which converts the crypto to fiat. The consumer still has to pay the sales tax (if any), while the business will still have to pay the revenue tax as usual. If businesses were accepting crypto outright, things *might* be different, but I've heard that most tax evasion is done by businesses skimming off the top...and that's without using cryptocurrency at all.

I really don't think it would affect the overall economy either way if people started using bitcoin for things. It probably would affect bitcoin itself, but the economy? I doubt it.

Quote from: jakelyson on October 27, 2019, 12:41:31 PM

Developed countries probably already have laws or guidelines in taxing cryptocurrencies.

I doubt that. There don't seem to be many laws about crypto in general on the books, which actually kind of surprises me. It's not some obscure thing anymore.

dothebeats

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No matter how well the system is or how great the tools are, if the ones who wield and use it are power-hungry and corrupt, there’d be no progression that’ll happen and everything will be the same—or even worse depending on the situation. Most countries are on the verge of coming up with a solid taxation guidelines regarding cryptocurrencies, and I believe it’s only a matter of time before they pass it on as a law. Should it ever make the final reading, the real question is: how would the governments use the tax money from it? Then again, that’s highly dependent on the heads who are placed on the seats of the public office which, much to my dismay always end up being corrupt themselves.

There’s a huge potential for crypto contributing a ton on domestic economies, it’s just that the heads of state are somewhat unsure or not really feeling the vibe of it just yet.

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Quote from: Wysi on October 27, 2019, 06:03:11 AM

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

That country will definitely start implementing laws that will tax bitcoin and other cryptocurrencies. Corporates and businesses cannot hide behind cryptocurrency to avoid taxes because they will be audited. Their cashflow will reveal where their money is. It is better for them to just pay taxes than face tax evasion cases and heavily penalized.

Quote from: Wysi on October 27, 2019, 06:03:11 AM

This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

Developed countries probably already have laws or guidelines in taxing cryptocurrencies.

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It may have o depend on how the government will use cryptocurrency to make its economy boost. China at least figured out how to do it since they are also a very developed country. Developed countries has a system and legal regulation for crypto and just like BTC is being taxed in US. Companies accepting crypto will also be taxed if they started accepting BTC. IRS is going to hunt them down if they are not going to pay.

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Quote from: NathanJB on October 27, 2019, 07:42:50 AM

Quote from: Wysi on October 27, 2019, 06:03:11 AM

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

Tax is the primary and largest source of income of the government and as such, they are very important for the continuous operation of government services as well as the continuous implementation of various projects. Without tax, the government will surely die. We do not want this for sure. So even if the businesses are already accepting cryptocurrencies, they should still be responsible enough to pay the government their proper due. Crypto is not made to get away from taxes anyway. That should be clear to everyone.

I don't think that those businesses can operate with illegal activities, we know how strict the government in terms of taxation, everything should be documented, as there's a big penalty when you were caught avoiding tax or worst will lead your business for foreclose, so, businesses especially those big companies will be afraid to do that.

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Huge businesses adopting cryptocurrency without taxes would really be impossible. Every company could only operate with the approval of the government and that requires taxes as well. We all know how significant taxes are despite having a corrupt government. It will surely affect the economy negatively. However, the usage of crypto alone couldn't ruin the economic situation but it could rather provide us convenient and profitable transaction.

mersal

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Quote from: Wysi on October 27, 2019, 06:03:11 AM

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

Who said crypto currency can be used to avoid taxes,it maybe possible for a small investor but for the big exchanges who accept bitcoin payments will be recorded because they might be asked to use and address which was registered for them if there is regulations on that country so governments will collect the same tax as fiat but I don't think they will accept in near future due to instability on the bitcoin prices.

rdluffy

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It not works this way you're thinking,why and how big companies will use BTC to avoid taxes?
It makes no sense, this companies are regulated and they will not risk their business just to avoid some taxes

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Big corporates will not be considered big unless they are registered in the government. Even they accept or operate their expenses thru crypto. They will pay in the government, but might lessen the amount intended to goes in tax. That's why some government bans it or soon the government might use centralised app to create ways to monitor it.

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Quote from: alyssa85 on October 27, 2019, 07:31:23 AM

Quote from: ufaiz50 on October 27, 2019, 07:11:46 AM

Quote from: Wysi on October 27, 2019, 06:03:11 AM

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

Developed countries certainly already have regulations regarding taxes. there are several ways that allow the government to tax users of crypto. For example working together with local exchangers that are usually used to exchange crypto to fiat.

In my opinion as we know, that it is still not possible to use crypto for living expenses or to buy something. The impact of the use of crypto on the economic sector is not much as long as the government still requires the use of fiat.

I think in some American states, you can use bitcoin to pay for state taxes, but until this is widespread, crypto won't get traction.

All require a gradual process to adjust what has been implemented in certain countries that make bitcoin multi-functional in payments or other transactions.
and in my opinion the tax payment does not have to use crypto and can be exchanged with fiat currency in accordance with the payment with a specified nominal, and most importantly the government accepts tax money and for the benefit of the country and also for the progress of cryptocurrency to be well received by the government and must following their rules one of them pays taxes.

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Quote from: Wysi on October 27, 2019, 06:03:11 AM

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

I don't think the governments would approve companies to use cryptocurrencies in their modes of payment. If however they wish to use it, they government might make an exchange exclusively to companies that will enable them to monitor, and impose taxes per transaction made, or whatever system they implement to claim taxes. Whatever their move is, if the government started seeing tax evasion cases through crypto, they'll surely be doing something about it.

veleten

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cryptocurrency usage in what role?
if using cryptocurrencies as a substitution to the current fiat system , it is too early
if you see the relative volumes of fiat , derivatives etc. compared to cryptocurrencies it is like 99.9 to 0.01% total
the global market capitalization of all cryptocurrencies is estimated to be under 250 bil USD
for example , the US debt is 100 times that , gold market 10x+ times that etc. , crypto is like a drop in the ocean at the moment
things could change if/when the price grows 10-20 times , this is not sci-fi but a very real perspective
but even then the bankers and the corporations behind the current system won't let go , see how many obstacles Libra is facing , being a centralized shitcoin as it is

NathanJB

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Quote from: Wysi on October 27, 2019, 06:03:11 AM

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

Tax is the primary and largest source of income of the government and as such, they are very important for the continuous operation of government services as well as the continuous implementation of various projects. Without tax, the government will surely die. We do not want this for sure. So even if the businesses are already accepting cryptocurrencies, they should still be responsible enough to pay the government their proper due. Crypto is not made to get away from taxes anyway. That should be clear to everyone.

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Quote from: ufaiz50 on October 27, 2019, 07:11:46 AM

Quote from: Wysi on October 27, 2019, 06:03:11 AM

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

Developed countries certainly already have regulations regarding taxes. there are several ways that allow the government to tax users of crypto. For example working together with local exchangers that are usually used to exchange crypto to fiat.

In my opinion as we know, that it is still not possible to use crypto for living expenses or to buy something. The impact of the use of crypto on the economic sector is not much as long as the government still requires the use of fiat.

I think in some American states, you can use bitcoin to pay for state taxes, but until this is widespread, crypto won't get traction.

Topic: Cryptocurrency usage will boost economy or make it worst ? - page 12. (Read 2205 times)