Topic: Hide your bought coins from taxauthorities (Read 557 times)

There's a lot of bad advice on this thread. It is an illusion that cryptocurrencies can't be tracked. Digital transactions leave way more of a trail than cash does. If you have enough crypto-wealth that you're concerned about how much your tax bill is going to be, then consult with a competent professional tax adviser or accountant who understands cryptocurrencies and trading in general. A good tax accountant can help you find legitimate discounts and loopholes, but you shouldn't deliberately break the law.

It depends on country cause in my you don't have to give any tax to goverment if you are trading crypto to crypto or crypto to smth but if you want to make it to cash you have to, so you need to get to know how law is working in your country.

And when he tries to put the money on his country?

If its a lot of money, it will be suspicious, because transfers from non friendly countries are more scrutinized than others.

You need to be low profile

Find an exchange which are not friendly to your country. If you are in USA, find a Russian Exchange. If you are in Russia, find a UK Exchange. Normally these counties won't share tax information with each others and so you are safe.

What about offshore bank accounts?

European laws allow you to have off shore, you just need to state that you have one and how much money is there so they can tax you...

Anonymous credit card is the best option.

For big money you could use some offshore banks, have you tought of this? As most of them want you to deposit like 10$-50$ or more to have an account with them. This way your money will be in the banking system and you will be able to use it, downside to this is if your goverment see that you have an offshore account - I don't know the laws of every country but I know that with offshore account you shold be good.

Using bitcoin debit card may be the best option. But again they are not 100% anonymous but most card providers are based on another country..

create a XAPO credit card, transfer your bitcoins to there and its done.

Just don't ask invoices and you should not have a problem with it

If you withdrawing your trading profit to bank account, you hardly can hide it from authorities. Once you reach certain amount of money received, you will be asked to declare it and pay income tax. And if authority will catch that you aren't paying tax, you can get big financial penalty. I don't know where do you live, but I recommend to do research about taxes for income received from virtual currencies in your country.
Only one idea came to my head, how to avoid paying taxes - sell bitcoins face to face for a cash.

The best way is to not hide your buyings, sellings, or capital gains/losses from the government. Evading taxes is a cheap way to ruin your life. You could give some of your wealth to taxes or give up a lot of your wealth to tax evadion penalties...and potentiay some years of freedom.

Taxes are supposed to help your community, you should feel pride that you can support your community in a better way than before.

Lol people are s silly and get s could bfused and stress and act ridiculous over this. Firstly crypto currency is not even recognized as currency in almost every country. Do you think the government has a Bitcoin address to pay tax? No. They don't. 5hey don't care about your crypto because there is not enough if it to make any difference to the taxes. You only pay tax n capital gain and only if you don't it with fiat. So if you withdraw 100k and capital gain tax is 20% then 20k goes to the government and the rest to you. You d not ever have to pay tax on any crypto ever. You can also buy things directly with crypto and it's fine. The government don't care for big flat screen TV and sound system and video game consoles. They only car I'd you doing big things like buy a new car or house. You can buy a second hand car without having to worry if it's under a certain and ubt but as soon as you move big money like in the thousands then they pay attention. What you should do is pay what you can with crypto. Rates and taxes electricity and water with fist and food with fiat. They do not tax these things. Also if you already paying taxes don't forget to make tax reductions. But only in fiat. If you get scammed r money stolen you can make that a tax deduction and you will not be taxed until you break even. So if you paid 10k for a bounty and it is stolen r not oaid you can make a tax reduction until you break even. Remember tax can sometimes work in your favour. There so many ways to bring tax down and make reductions.

If you are making a nice small fortune for yourself with bitcoins I would suggest moving into a country were they don't even know what bitcoin is. I keep my money on an e-wallet and avoid taking it to the bank, I just use the card. So my advice would be to exchange your bitcoins, keep it on an offshore e-wallet and use that e-wallet's mastercard to buy stuff or retrieve the money through an ATM (but ATM withdrawals are expensive).

Friendly advice it is best not to break the laws of your country of residence or tax domicile. Regulation is coming to the crypto industry and those that have flagrantly broken the law will be in trouble.

If you are a small fish with a 0.01 BTC profit, then perhaps you may escape with no one noticing. But if you are a big fish and earned 100 BTC, you would be a very tempting target for a government to claim their fair share of your profits possibly with penalties.

One more point if you live in the US reports are sent to the government for amounts over $2,000 fyi.
https://www.fincen.gov/money-services-business-msb-suspicious-activity-reporting

Where do you come from? In my country (I live in two countries, Canada and Philippines, lol) it's either lawmen will advice you how to properly handle tax management for your coins (Canada) or simply not care about it at all (Philippines). The latter seems to be the safe haven for money launderers, right? Wrong. Banks here usually would raise a red flag if your deposits exceeds $25000 every month. The government would investigate and see whether those gains can be taxed. You can't hide your wealth if you put it in the banks, but if you keep your bitcoins as is, you're golden.

In my country (netherlands) is posessing coins taxed. So it’s not only the selling but if you own it, they will see it as money (which technicaly is not true). To bad i’m not talking about lots of coins. Its more like a brainexercise how to ‘hide’ it. Once on my hardware wallet, it’s off the grid I think.

Sorry dutch text alert with the statement on coins and taxation
bitcoins en andere virtuele betaalmiddelen
Virtuele betaalmiddelen, zoals bitcoins, staan op uw computer opgeslagen. U kunt deze alleen gebruiken als betaalmiddel op internet. U geeft van deze middelen de waarde in het economisch verkeer aan op 1 januari van het jaar van aangifte.

You forgot something. Taxes authorities don't care about spying your activities on crypto exchanges. Why should they waste their time on foreign websites operating in foreign countries while they can go directly to the banks?
It's how they find a lot of frauds. For example, in my country, receive above €5000 transactions monthly and your case is automatically sent to govt authorities for further verifications.

Unsure how you would get taxed on buying coins.
Selling is another thing and depends on national laws generally.
Identification on exchanges isn't for tax purposes.

People with heavy pockets don´t ask on forums, but spend few usd for professional advice.
 If you want sell a small amount of btc,  just try F2F.

If you don't already own crypto, then you will still need to use fiat to buy it (unless you are a miner), so you can not really hide it. If you are talking about large amounts, just find a good tax advisor and set up an offshore legal entity.