How to TAX Bitcoin. An easy way ! - page 8.

noictib

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Quote from: GoogleBit on June 17, 2017, 05:54:28 AM

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?

If any new rule will made regarding to track every Bitcoin address then I don't think it will be a successful step for them to get success to caught the tax stealler because Thier are lots of the ways to make anynomious deals in the Bitcoin with cold storage no one can track you .
So in my opinion there should be another wallet by the government for the Bitcoin and each wallet is verified with the eKYC verification .
So that every detail will remain in the single wallet and then no one need to track , they only need to see that how much he made received and sent and how much he made profit . In this way they can easily apply the tax for the earnings .

audaciousbeing

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Quote from: GoogleBit on June 17, 2017, 05:54:28 AM

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?

I guess that part of disclosing your bitcoin is something government has been able to lay their hands on because there is no way to verify if what you will be disclosing or not as at now like we have now compared to using fiat. And I think this is one reason why government will not accept bitcoin anytime soon because they need the money and bitcoin as at today will not give them their own share of the pie.

HabBear

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You missed one key point - taxation on income. If you're earning income in Bitcoin and the tax on that income hasn't been whithheld you'll need to declare on your tax forms at the end of the year. This income may be solely within your control to report - e.g, you sell something online. Or It may get reported to the government on your behalf - e.g., income paid to you by your employer is almost always required to be reported to the government. If the income is due to the latter scenario the government will expect you to declare that income, however they'll only know to call you out on it if the conduct an audit on you.

How governments treat bitcoin - as a currency or as an asset - will also play a part in the taxation rules and what rate is expected to be paid, e.g., the personal income tax rate or the capital gains tax rate.

Here's a good summary on things to consider related to the taxation of Bitcoin: https://en.bitcoin.it/wiki/Tax_compliance

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Quote from: Meuh6879 on June 18, 2017, 12:37:14 PM

Bitcoin already have a taxation : it's the VAT.
simple.

in my country, it's 20% of the price. Roll Eyes

For all types of VAT?
http://www.vatlive.com/vat-rates/european-vat-rates/

Maheshkumar_Hrangkhawl

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Activity: 600

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I don't want to give the details of my Bitcoin wallets or Bitcoin holdings to the government. Doing so increases the risk of the information ending up in the wrong hands, and the chances are high that your coins may be stolen by some hacker. IMO, Bitcoins must be taxed only if they are being converted to fiat.

Gastotade

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Quote from: dihari on June 18, 2017, 09:53:03 PM

As I know the taxes is take by government from the people's income/salary/profit. Just because you have 10 btc in your wallet, it doesn't mean you have to pay tax of its amount. I think it's too complex to tax bitcoin. The simplest way they can do is to receive reports from the exchanges about our transactions.

Tax requires some proofs so do as receipt ,so it may only taxes the transactions we made ,like what you sad on exchanges,companies,sites or some store of ever had. It will be hard to hovernment to put tax on btc since its decentralized and hard to control.

dihari

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As I know the taxes is take by government from the people's income/salary/profit. Just because you have 10 btc in your wallet, it doesn't mean you have to pay tax of its amount. I think it's too complex to tax bitcoin. The simplest way they can do is to receive reports from the exchanges about our transactions.

olubams

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Activity: 798

Merit: 503

Quote from: GoogleBit on June 17, 2017, 05:54:28 AM

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?

I really would want to know the country you are residing because what it means to me is that the government of your country AHS equally recognise bitcoin as a currency and that is why it can be allowed to be disclosed when filling the returns to the revenue agencies, over here its not like that so we still have something to hide under. At the same time it will be outrightly illegal not to disclose because that would amount to tax evasion which is criminal in nature that could earn one a prison sentence.

Meuh6879

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Bitcoin already have a taxation : it's the VAT.
simple.

in my country, it's 20% of the price. Roll Eyes

CryptoBry

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Under this scenario, I might choose not to use my Bitcoin for local transactions and will only use it online where I know that the government could not track it down. In my view, the government should not stop anybody from having a Bitcoin and should not tax anybody just for having one but when there can be transactions especially on a registered merchants then probably we have no choice but to pay some form of tax....but the government has to first recognize Bitcoin as cash or at least as an asset and lay down some framework for all residents to follow.

David19

sr. member

Activity: 441

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As my country currently doesn't recognize bitcoin as a currency i don't pay any tax on it

Mometaskers

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Good luck implementing this. Even if this legislation pass, what is stopping people from making additional addresses and just register one with the government? The only way they can really make it hard for people to enjoy their mone is if they heavily regulate exchanges, making it harder for people to just cash out, since transactions would be tracked.

Still, I'm sure people would find ways to get around this. My country accepts bitcoins as legal payment and our exchanges are required to get their customers' personal information but that's just it. They are not taxed here, probably because of how volatile it is. Many here still consider going into bitcoins as taking a risk.

digaran

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🖤😏

While in my country the government takes all the taxes and something extra on top by including bull shit excuses in our power bill utility, gas, water and whatever we buy pretty much has tax included by 9% of the value of the purchase we pay tax on whatever we buy and sell.
When it comes to Bitcoin there is the possibility to use a mixer in order to hide your Bitcoins and there is no other way to avoid taxation in Bitcoin.

HTML6

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What kind of massive supercomputer would be needed to constantly watch everyone's menial spending? Just charge sales tax. It's 100% easier. If people are ripping off the govt then they'll just increase the sales tax.

magneto

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Quote from: GoogleBit on June 17, 2017, 05:54:28 AM

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?

It is still possible. Do you really expect people to submit their bitcoin addresses so that the government can track them down? Let's just say that they don't do the "right thing" and they don't submit anything to the government. What will ahppen to them? Nothing, most likely. Because no way is the government going to check on every single household just to get a few mBTC worth of tax.

Also, your model is flawed because people constantly use multiple bitcoin addresses. In fact a lot of wallets do this automatically which means that submitting your bitcoin address does not do anything at all. Your receiving address will change over time, automatically.

There are forms out there for taxing bitcoin that you supposedly must fill out, but nobody does and the government doesn't seem to care at all because crypto is a small market compared to stocks and stuff, and it's not worth the time and money to track everyone down.

kriptotr

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Bitcoin is not taxable and it should stay like that. If they try to make bitcoin taxable, blockchain community will find a way to elliminate the method they (tax takers) track people to tax them.

Bestwishes745

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In my mind there is a way with which someone can put tax on bitcoin and that is if the state start their own wallet and allow everyone to use that then they will take the tax from that users. But I do not think that it will be favorable.

Hydrogen

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I think people tend to forget taxes only make sense if the state manages tax revenues efficiently and effectively.

When a government spends $6.5 trillion taxpayer bucks on a war in the middle east which increases the number of terrorists in the world and helps ISIS grow from a small organization to a worldwide power.

That type of inefficient and ineffective state spending represents a destruction of wealth and prosperity for the people of a nation.

pinkpanther03

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Quote from: GoogleBit on June 17, 2017, 05:54:28 AM

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?

Bitcoin could only have a chance to tax it if BTC will become centralize, were every they can create laws for it. But as long as bitcoin is decentralized it will never be happen that bitcoin could have tax or it will be hard for the government to tax it.

giletto

sr. member

Activity: 812

Merit: 250

LOl. I will never ever give the government my address and the number of my bitcoin. It will totally this destroy the anonymous and make me become a joke on the internet. No one will give the government those information

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