Topic: How to TAX Bitcoin. An easy way ! - page 2. (Read 4408 times)
If we impose tax on btcs too then what would be the advantage of using btcs over normal fiats
Great idea as because now there will be onlookers on the transaction route thereby preventing the misuse of btc ecosystem
That would be a great improvement in the system and world of crypto currencies if it becomes possible for us to monitor them. This way, more and more people are going to invest into crypto coins making them common and reliable. More investors means that more people are going to sue digital currencies in their daily routine. Bitcoin monitoring will also deprive government of any excuse for making it illegal.
I th
Great idea as because now there will be onlookers on the transaction route thereby preventing the misuse of btc ecosystem
Your idea has got point. I don't think any mistake is present and if there is any, using those holes would claim penalty
Its better to have an onlooker or middleman to track transactions and maintain security
However the onlooker wants to do it, it would still be an issue. Unless of course, the government decided to make everything centralized and enforce a law that before anyone could make any cryptocurrency transaction, it must be from an public address that has been registered with the government and anyone who ends up going against that will have to face the repercussions. In that way, there could still be a possibility with the fear of the law. 
In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.
So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.
So the actual way of getting the real numbers is quite bad.
In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...
All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.
Sure it is still possible to hide Bitcoins, but then it is illegal.
...or did I miss something?
Together with some major bills for insurance and healthcare, that's all they get.
So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.
So the actual way of getting the real numbers is quite bad.
In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...
All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.
Sure it is still possible to hide Bitcoins, but then it is illegal.
...or did I miss something?
In most countries the information is automatically captured and sent to the goverment by companies so that won´t work in most places. Bitcoin would be considered as a payment, yet not as cash.
Well, it make no sense if the tax department will make a rule of law to report every btc address because in the first place the government will not accept the bitcoin as a mode of payments if this things will be accepted it would easily be made the tax collection of the tax department in a country.
Correct. Most important than knowing the address is knowing the acquisition value of those bitcoins, so in theory the number of bitcoins is less important and the address is quite useless for them.
It will still be very hard for the government to track down cryptocurrency to cryptocurrency trading activities unless may be the bitcoin protocol itself is now changed to become centralized and since it is all about the community anyway, I do not see this happening.
Its far better to have a limited taxation because if over taxation occurs then there will be no difference between fiats and btcs
Over taxation will make people to even start finding reasons to evade tax. Moreover, if there is a huge taxation of cryptocurrency in my country, and I have a lot of it, I would rather move out of my country to go settle in a place where their taxation is lenient and possibly start a business and help the growth of such a country with the little tax I pay which I am sure a lot of countries will be willing to accept since my own government is so greedy to not know the right thing to do. But that your government recognizes bitcoin as a currency? I doubt it. Your income in bitcoins according to the law is not revenue. If you buy goods with bitcoin it does not fall under the tax base. If you exchange them for your currency, then taxes will have to pay.
You are correct mate because what you have said already happened here in my country where local exchanges were regulated by centrql banks backed by the government. All cryptocurrency funds that we are about to convert into fiat money will automatically be deducted with tax. For me tax is okay because they can only do it once during the convertion of cypto funds into fiat currency and it will also help improve our country's economy because Bitcoin community here is increasing therefore there will be enough tax for it.
Taxes can be avoided but that is very risky. My country is also strict because of the tax payments. Decentralized currency is taxed when transferred to the FIAT. Certain individual must fill a form and take it to the tax regulators because that doesn't go automatically but manually.
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Before the 2 years, Bitcoin tax system has sorted itself in my country. Before, some of the regulators didn't even know what to do when someone reports he has the Bitcoin is the online wallet. We can all try to cheat the system with the centralized or decentralized currencies but in the end, we are only hoping not to get caught. I don't think that is worthy.
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Before the 2 years, Bitcoin tax system has sorted itself in my country. Before, some of the regulators didn't even know what to do when someone reports he has the Bitcoin is the online wallet. We can all try to cheat the system with the centralized or decentralized currencies but in the end, we are only hoping not to get caught. I don't think that is worthy.
No amount of taxation or onlookers can provide an economic system without dark trades. So I don't have any reliability on them.
That is a fact; there will always be dark trades. Since there has always been dark trades with fiat and it was still easy for some to easily cover their tracks, I wonder why it would be so different for cryptocurrency.No matter how much the government want to impose certain things related to taxation, or compulsory submission of addresses like the OP said, it will not work easily that way since I can either make use of mixing services anyway or generate new addresses without the government knowing. They had better just stick with regulating exchanges.
Countries won't ask you to report all the addresses you own. That's stupid and time consuming. People will take advantage of it, report some random address whilst they use some other addresses. If any country has to implement tax on their currency, they would rather put taxes on capital gains for people living in that country, which makes much more sense. Other wise, it would just be a waste of time and money.
...ok guys.
In my country we can pay the power bill and buy tickets for railway, we can even pay some taxes with btc.
What I'm talking about, if every country is treating btc as a currency, then, it is not different to cash to tax it.
It makes it even much, much easyer. Think twice before you post...
but thanks for replay ;-)
If the government will ask for taxes from my crypto investment then as long as I'm profitable I will pay for the taxes without hesitation because it's part of the constitution. I'm hoping that here in my country bitcoin will be accepted in paying bills as your country do. In my country we can pay the power bill and buy tickets for railway, we can even pay some taxes with btc.
What I'm talking about, if every country is treating btc as a currency, then, it is not different to cash to tax it.
It makes it even much, much easyer. Think twice before you post...
but thanks for replay ;-)
But that your government recognizes bitcoin as a currency? I doubt it. Your income in bitcoins according to the law is not revenue. If you buy goods with bitcoin it does not fall under the tax base. If you exchange them for your currency, then taxes will have to pay.
Definitely saying he is saying the right thing.There is no need for to pay a tax for bitcoin earnings if they didnt recognize bitcoins as a main payment method or one of the main currency in your country.They will only have right to tax you off if you are using a official currency on your country
I think here in our country, when you exchange Bitcoin to fiat. Tax is automatically deducted when I convert it. I think that happens when I pass it through to M Lhullier.
in my country the same tax reporting procedure but can use online access. but in my case the cryptocurrency wallet does not need to be reported. it's just tax free. meaning that cryptocurency has not been touched by taxes because my country still has no rules of crypto use that is very encouraging. here the tax is not too expensive may be more expensive overseas. income tax from crypto work can be said freetax.
To me, I don't think Bitcoin is easily taxable because of its anonymity where your funds are stored in an encrypted wallet that can be controlled by only you.. But can be taxed at the point of spendable for goods and services. Tax payment is actually legit, but not applicable to Bitcoin since its deregulated. I only feel when and where applicable to pay tax on Bitcoin in any form it comes later should be adhered to.
I think by having the transaction accounted by a bank may solve the taxation problem. I think set it to like 10% tax
In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.
So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.
So the actual way of getting the real numbers is quite bad.
In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...
All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.
Sure it is still possible to hide Bitcoins, but then it is illegal.
...or did I miss something?
Together with some major bills for insurance and healthcare, that's all they get.
So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.
So the actual way of getting the real numbers is quite bad.
In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...
All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.
Sure it is still possible to hide Bitcoins, but then it is illegal.
...or did I miss something?
Will,maybe that situation its depend on which country did you come from because the bitcoin legalization is only controlled by the nation legalizing the cryptocurrency bussiness,but here in our country our government we could not experience that kind of situation by controlling our transaction in bitcoin,so for us now we are lucky that our government have a concern,for all of bitcoiners,and they did not implement a restriction to join in investing digital currency,even they cannot gain an income tax.
No amount of taxation or onlookers can provide an economic system without dark trades. So I don't have any reliability on them.
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