Anyone who does not fully document, file taxes for, and pay taxes on 100% of their income is a playing a very dangerous game with severe financial and liberty consequences. As long as one person exists, or a piece of paper, or a transactional record of any kind... the IRS has a very long time to come after you, imprison you, and steal everything you have.
Until that changes...
Topic: Help Quantify the Value of "Off the Books Income" (Read 1133 times)
As you get at with some of your questions there are a ton of differences and opportunities for arbitrage introduced due to government intervention ranging from AML/KYC, FBAR, FACTA, tax rates for income, gift, capital gains, inheritance, etc., currency controls, political stability, banking stability, currency risk, etc. There is also each individual's risk tolerance for regulatory and tax compliance relative to the risk from enforcement and penalties therefrom.
Consequently, this is a question that will vary greatly for each individual.
Consequently, this is a question that will vary greatly for each individual.
Much income is fully documented, such as a pay check, direct deposit, pension, or dividends. Income received in Bitcoins (or cash) may or may not be well documented. What is the relative value of $10,000 of undocumented, off the books income vs. $10,000 of documented income?
Are they the same to you, because you report everything? Do you prefer fully documented income? Is any difference in relative value solely due to the marginal tax rate, or is the effect compounded in some way?
Would your answer change at all if you lived in a country with a corrupt government, confiscatory tax rates, and restrictions on the transfer of money out of the country?
Are they the same to you, because you report everything? Do you prefer fully documented income? Is any difference in relative value solely due to the marginal tax rate, or is the effect compounded in some way?
Would your answer change at all if you lived in a country with a corrupt government, confiscatory tax rates, and restrictions on the transfer of money out of the country?
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