Is Taxing Bitcoins Possible? - page 6.

bitbunnny

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Quote from: LogitechMouse on January 22, 2018, 07:47:32 AM

Nobody can do that. Taxing bitcoins is impossible because bitcoin is decentralized so who will get the tax? Governments? Nahhh... The exchanges and the regulators maybe they can get tax with them but to bitcoin holdlers is just impossible.

This is not quite true.
Bitcoin transactions and profit from them are already taxed in many countries. Maybe Bitcoin itself as a coin can't be taxed, or in a very hard and unefficient way, but the income that you get from it can. It's written in many existing laws in many countries. You have the duty to report Bitcoin trading income to your tax authorities.

Stimah24

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Well, I'll say it will be very impossible to tax bitcoin because its a type of digital currencies and sometimes regards as asset, if there will be a such law by a government of any country, they will have to considered the cost of collection to the tax hoping to collect, while I think that the cost would be exorbitant.

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Quote from: LogitechMouse on January 22, 2018, 07:47:32 AM

Nobody can do that. Taxing bitcoins is impossible because bitcoin is decentralized so who will get the tax? Governments? Nahhh... The exchanges and the regulators maybe they can get tax with them but to bitcoin holdlers is just impossible.

well I am sure that you know that currently you cannot exchange your bitcoins to fiat without providing like a scan of your driver's licence to the exchange ?

LogitechMouse

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Nobody can do that. Taxing bitcoins is impossible because bitcoin is decentralized so who will get the tax? Governments? Nahhh... The exchanges and the regulators maybe they can get tax with them but to bitcoin holdlers is just impossible.

Zebra.Guy

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Quote from: jekzy on January 22, 2018, 07:38:54 AM

it's possible if the goverment in your country apporved it Cheesy

my friend had some income in US and it was very very small so he forgot about it completely, until the letter from his country (non-US) tax authority arrived and they told him: "hey, you had this income in US. Why don't you tax it with us too?" and then he remembered. He paid the due tax, it was no big deal, the sum was very low. What I want to tell, is that it is not necessarily your country that must implement measures to tax bitcoin, but if you use the US-based exchange than you are in trouble too, your country may/will learn about it, because US has already implemented such measures (KYC and others) and the tax authorities collaborate very closely.

jekzy

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it's possible if the goverment in your country apporved it Cheesy

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Quote from: investerS on January 22, 2018, 04:59:32 AM

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

Directly taxing bitcoin is a bit impossible due to its decentralized nature. There's nothing the government can do about it. But there are different ways the government can put tax when it comes to bitcoin. Government can monitor and tax all apps and wallets that we use for bitcoin related transactions. Companies who develops the wallet are probably required to pay their taxes and in that way they put tax on every transaction of its user by adding it to the amount of transaction fee that they have to pay.

Zebra.Guy

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well I am reading in some other thread that bittrex asked its members to provide the selfie and the scan of a driving licence in order to withdraw funds. Try not to pay taxes if they have your selfie already...

Deshauna

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this is the major problem for the bitcoin. And this is why many countries are denying crypto in their country. But other country also requires you to give identity if you are into bitcoin. And for me, that is better for me than banning bitcoin.

anti-scam

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This may be a solution for bitcoin holders to have an important role in building the country's economy, gaining government benefits and creating regulations that protect crypto users.
The problem is, how to determine the tax limit to be paid, because the bitcoin price is uncertain.

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Quote from: prix on January 22, 2018, 07:19:51 AM

It's impossible. First due pseudoanonymous nature of Bitcoin, second due the impossibility of accurately establishing the economic nature of transactions (trading, sending, outputs integration, etc.).
I think it's better for the government to take the tax when fiat money withdrawing through exchange, maybe even when buying goods (taking into account the amount of fiat money entered into the system).

exactly that they are doing - they are applying the tax when the bitcoin is exchanged to fiat. It is called a capital gains tax. So why are you saying it is impossible in your first paragraph, if they are effectively doing it and you yourself admit it?

Bessta

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In my country, i know in due time our government will find a way how to tax income from bitcoin. Our government is so desperate in taxing businesses and individuals. My government is so good at finding ways to tax its people in fact recently it passed a tax law which the government claimed to be pro poor but in reality its otherwise that people from all walks of life middle earners and low earners are both feeling the bad effects of that tax law. So it is possible that bitcoins will be taxed here in my country.

prix

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It's impossible. First due pseudoanonymous nature of Bitcoin, second due the impossibility of accurately establishing the economic nature of transactions (trading, sending, outputs integration, etc.).
I think it's better for the government to take the tax when fiat money withdrawing through exchange, maybe even when buying goods (taking into account the amount of fiat money entered into the system).

khaled0111

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It will be impossible to force every one to pay taxes. Millions of transactions are generated every day and knowing their sources is not an easy task since it can be created from an exchange that does not require ID verification, besides the use of VPSs and proxies makes it harder.
The easiest way is to control exchanges and make them pay taxes, in return they will ask their users to pay more fees.

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It is possible to tax bitcoins, but probably not on an individual level. A bitcoin specific taxation on individuals is hard to implement because whatever regulation they impose anyone could easily avoid by working under the radar. Businesses on the other hand though, they easily tax and regulate. Which translate to taxing everyone using the service of that bitcoin establishment. So yes i think it is possible but they'll be targeting businesses and miners.

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Quote from: pogiparin on January 22, 2018, 06:51:00 AM

If governments recognize the use bitcoins then definitely it will be taxed. The whole idea of taxation is getting a bit of money from a person's revenue in order to provide social welfare. If bitcoin becomes a big success, then government would start to notice eventually having it taxed.

oh definitely it is happening. IRS has requested exchanges to hand out the customer lists together with their transactions. So USA has it covered. And then there is this joint France and Germany proposal to regulate bitcoin (read: regulate bitcoin taxation) that is going to be raised in next G20 summit.

So I think that it is happening all over the world and it is not the question of cooperation of exchanges with governments, as some other member suggested. Rather, it will be passed as a regulation, meaning that exchanges will be obliged to pass certain information to IRS and other tax institutions.

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Quote from: investerS on January 22, 2018, 04:59:32 AM

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

It is possible to have tax in Bitcoin if you transact using centralized exchange that holds your identity and when you convert your Bitcoin to paper money, but I think it is impossible to put tax in all Bitcoin transactions especially if you use over the counter that is used to buy and sell massive amount of Bitcoin. There's nothing to worry about this if your country does't have a tax regulation about cryptocurrency gains but if IRS in your country declared it as an asset then you should pay your tax, and report to them every transaction you made.

nightxglow

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I don't really understand programming as well, and i don't know if there's a way to detect all of our transaction using bitcoin.
But if yes, it'll be possible that we will be taxed for our bitcoin income, since it's an income anyway, so we need to pay tax as a citizen.
But unfortunately, i think it'll be hard to detect and track our transact history, when and how much we sell our bitcoin, how many income we get fom this and such.
So it'll be hard to do so, but maybe in the future it will happen with technology development, who knows?

tot-o

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Yes, I've been reading articles that proposal on posting tax on bitcoin had been and already submitted to congress for further study, it was observed by many that a lot of people earning a big amount of money in bitcoin without paying or contributing tax...

I think bitcoin will be having tax but not now.....

Reid

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With bitcoin it is impossible.
But how are you going out?
It is still cash or fiat.
When you go out that could be the way to put a fee on you plus questions where you got the money.
If they cannot track you within then they will be waiting at the other end.
That is possible.

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