Topic: How to TAX Bitcoin. An easy way ! - page 3. (Read 4407 times)
I don't know anything about btc transaction too much because I am a newbie
Its far better to have a limited taxation because if over taxation occurs then there will be no difference between fiats and btcs
Its better to have an onlooker or middleman to track transactions and maintain security
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.
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.
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.
The same problem applies to arts. Some people do private selling of painting and do not pay their taxes. I don't see how your proposal could be a solution.
I think there should be some mere taxations over btc transaction. it would make people believe that it is not illegal
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?
Here in my country we have to register if we want to have an online wallet that can convert local currency to bitcoin or vice versa. In the registration process we have to submit government issued identification card. So, if the government want to tax the money that we had on our online wallet, it is just very easy. All they had to do is coordinate with the owner of the online wallet to get our identity.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?
I think that the easiest way to tax bitcoin is to request a record about the transactions in bitcoin for the whole year and just tax it with a fixed percentage so they can easily give their tax payment and i think that it will be applied for the next years if the government will accept bitcoin because they can't just let bitcoin prosper without having a few profits from it.
Taxing bitcoin is the reverse of its original conception. What government can tax are transactions in trading. South Korea required exchanges there now to do KYC. That means trade profit as in stocks can be taxed in time.
The government will file a tax evasion case that could lead you to imprisonment if bitcoin is being legalize. However, the government will not be that dumb to get your bitcoin holdings. The government will be the third party of any online transactions from buying bitcoins to exchanging bitcoins so there could be no reason for you to evade tax. And you could have no choice since the transaction will be secured. Then the bitcoin will be coded with numbers so if you're holding bitcoin without their code then your bitcoin holdings will be considered as illegal and will be confiscated. How cruel they will be and all of that is only my opinion. For short the government is not that dumb to be scam by anybody.
No government in the world can not control your bitcoin account. More than that until the government does not recognize bitcoin as currency you do not threaten any responsibility for the fact that you hide your bitcoin account. But if you cash out bitcoin through your Bank account you can be alleged concealment of income because the account you get the national currency, and this income.
This will only be happen if bitcoin become centralize but bitcoin was decentralized that's why it cannot have tax ever, this is the reason why the government of each country can't control the bitcoin of each holders in bitcoin community.
Does it really gonna happen? I don't see any reason for bitcoin to get taxed. Bitcoin is virtual and it is nit recognised fiat currency. We pay for the money that government circulates to us. Bitcoin is decentralised and it may rise a question that why it may need to taxed.
Also adding to your last one, there won't be any need to give your every bitcoin address, I think it will need different system. May be your wallet details and statement.
Does it really gonna happen? I don't see any reason for bitcoin to get taxed. Bitcoin is virtual and it is nit recognised fiat currency. We pay for the money that government circulates to us. Bitcoin is decentralised and it may rise a question that why it may need to taxed.
Also adding to your last one, there won't be any need to give your every bitcoin address, I think it will need different system. May be your wallet details and statement.
This will only be happen if the government of the country has the capability to control bitcoin. Which means it become centralize they can tax it so easily. But if not, of course they can't do such things to deduct any tax of from the bitcoin holder in bitcoin industry.
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.
Your statement was correct, also agreed with you. Earning bitcoin is no fee or charge, or in short tax but once the bitcoin exchange into fiat cash or money and you buy some goods, then it will have tax. We all know that all goods have tax so we considered it as paying tax. Not paying the tax directly to the government but we pay because of buying those goods. If bitcoin wasn't created, can we afford to buy goods and services with tax? Of course, not! Bitcoin helps people and also the government to collect those taxes.
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.
Yeah that explains everything in one shot. Before you could think of paying tax on bitcoin you need to know what is the legal status of bitcoin in your country.
Filing of bitcoin may not needed if it is considered as commodity or asset in your country. It has to fiat currency and to be transacted through your bank by means of real banking system. As long as it is bitcoin form it's not taxable.
as a general rule you have to pay taxes on it. I don't know how because every country has different rules and different implementation.
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.
Yeah that explains everything in one shot. Before you could think of paying tax on bitcoin you need to know what is the legal status of bitcoin in your country.
Filing of bitcoin may not needed if it is considered as commodity or asset in your country. It has to fiat currency and to be transacted through your bank by means of real banking system. As long as it is bitcoin form it's not taxable.
Jump to: