Is Taxing Bitcoins Possible? - page 7.

FrueGreads

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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.

I would say it depends on how you "use" your addresses. If you deposit on a normal exchange that asks for KYC verification, then of course governments can charge taxes over bitcoin, since they can easily know how much profit you are making from trading crypto. In theory they will also be able to track the address you used to deposit on the exchange, so if you use that address for anything else they will know what you are doing.

In the future, if you use bitcoin to purchase goods in a store, and you pay with bitcoin and ask for a receipt, then that address will also get associated to you, so again the government will be able to know how you are using the funds in that address. Don't forget that everything is kept public in the blockchain, so as long a an address gets associated to you, you every move with that address can be tracked.

I think the LN will also help here, and there are some mixing services that could probably help, but I still don't have a lot of information about this.

diguyo

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Specifically bitcoin, no. However, capital gains tax for sure. I don't know how it works outside the UK, but you have to declare when you make profits on interest/investment over I think it's 11k. If you don't you'll be in trouble if they find out...which they probably will if you're withdrawing a lump sum greater than that.

That tax here would be 28%. There are ways to get this lower though, but you'll probably need an accountant for that. Feel free to drop me a PM if anyone in the UK needs one - I can get good rates with a friend of mine.

pogiparin

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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.

mOgliE

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It is possible.. under certain conditions.

For example, in most European countries, the government determines the amount of taxaton due by the individuals according to their banking records. Well, in reality, they ask the employer to state the wage of all employees, then they ask each employee to state their wage (and other resources as well) and with these, they determine the amount to take.

Yet, in some cases, divergences appear between all the statements. Therefore, in such cases, the State can ask the bank to see the record of all transactions. In such a situation, if someone has changed bitcoin for euros and put it on their bank account, it will appear as a resource. And thus, will be submitted to taxation.

But indeed, this case is very specific. And I guess most of the time, gain from bitcoin are just hidden by inidividuals and ignored by governments. Just because for the moment it will be more costly to try to find those owning bitcoin than the gain the State would make with the taxation of such operations.

As you guys, I am not an expert. Maybe there is already a dedicated branch for that but... I bet there isn't! Wink

Catch-22

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If the government regulates bitcoin, then yes. They will need those exchanges to declare their income which will be the basis of the taxes they have to pay. In return, those exchanges will add those taxes to their users transaction fees.

Dulanjaya

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I think that Bitcoin is not taxable that is not because of anything else because of bitcoin is running on decentralized network .So, any government cannot controlled the bitcoin’s taxes. If bitcoin can be controlled by centralized authority in future then bitcoin will be taxable.

asdlolciterquit

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well, yes.

But to tax btc inself governments need to cooperate with exchanges like they do right now with banks.

I don't know how soon this will happen..

3gon

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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.

They cannot tax it because they do not know to whom will they give the tax. It will only be taxed if the cryptocurrency market is decentralized.

fo0tman

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I think taxing can be possible but not worth the huge effort, at least now. If, in the future, BTC is a worldwide used method of payment for daily life services, goods, etc., then yes.

HasHe

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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.

Unless people try to convert their bitcoins via exchanges,bitcoins could not be taxed.If bitcoins were kept in the wallet unused,then the governments would not be able to tax it.

That's why,china also laid strict regulations over bitcoin exchanges to follow KYC so that it could know the actual users and tax them for their bitcoins.

Painbird

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I have don't lots of idea of this topic but i think its not possible to track the bitcoin transaction by government. The transactions only happen by two person. No one can know it. But I think there will be a decentralise platform could be invented to track that by government. It will helps bitcoin to legal it whole over the world.

Ranly123

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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 would be posible when you are using a wallet that is regulated by the government and also when changing your fiat money to bitcoin. Dont need to worry about tax because it is used for the security of your account.

maxj57634

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I dont think that bitcoin is taxable unless the person holding the bitcoin declares it as part of his/her property. This is the only way that the government can put tax on bitcoin but for the technology itself is not taxable. Government has been finding ways to tax their people who hides their riches in bitcoin and so far non has been implemented.

Pasaway2701

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Quote from: CornHub on January 22, 2018, 05:29:06 AM

Bitcoin unlike any other currency existing is decentralized, furthermore it is not run by capitalist and elitists, which I think is a good reason not to make bitcoin subject for taxation because although it is run by private sectors it is not run by private elitists. furthermore, we are anonymous when we enter the bitcoin world so I think it is impossible to track and tax the users themselves.

I agree that it is impossible that bitcoin become taxable but as a user of bitcoin, even we are anonymous, we can pay tax in other way. We pay tax but not in way directly from bitcoin, during the transaction of bitcoin we pay for the fee to other agency that handles it. Like if we have cashout our money, the bank which process it will add a fee which contain additional tax from it.

penig

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Quote from: nirmalaayi on January 22, 2018, 05:46:42 AM

I'm new in the cryptocurrency world but i think it can't be possible to taxing bitcoin because as long the bitcoin is safe in the personal wallet it will still under the radar and can be tracked by goverment or tax authority.

Just the same as holding shares, while they sit there on account/paper certificates, the value can ballon and no tax is collected. Sell them and tax is due. Bitcoin is no different. Governments really aren't as concern about this as people think, because the tax system already covers them.

julius caesar

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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.

Well I think its possible but I think the control will be here not in hands of the governments. I think taxes were great so as an individual you fulfilll the responsibility to help your own community, I think in transactions they already made this and its not enough for the services and taxes . This may help our community though.

eaglewhite80

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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.

Taxing can really work if you are converting to fiat, since that would be more like a capital gain tax. However, bitcoin to bitcoin transaction? I am not sure how that can be pulled off. Bitcoin is pseudo anonymous and unless the government finds a way to know who is attached to a particular public address, which is impossible since I can always decide to change my pub key anytime i wish, then with that, I really do not see the possibility of taxing P2P transactions.

Chandler32

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Quote from: datodota002 on January 22, 2018, 05:40:29 AM

it's possible to do if the goverment and bank cooperate with the exchanger to know all the user asset in the exchanger. so when the user send their bitcoin from their wallet to the exchanger wallet to cash out the money and then list the bank account to cash out and then report to bank and tax authority. in my opinion that's another way to taxing the bitcoin user.

I agree with this since it is a very pratical and possible way. I mean, how is Japan accepting Bitcoin without taxing it? I think they have found a way around this... Correct me if I am wrong.

welljo0108

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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.

I dont think so it can be possible to have tax a btc because some using of btc can stopped it.if the government knows that btc is growthing maybe they can take an action about that issue.

nirmalaayi

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I'm new in the cryptocurrency world but i think it can't be possible to taxing bitcoin because as long the bitcoin is safe in the personal wallet it will still under the radar and can be tracked by goverment or tax authority. and there are many way to cashing out bitcoin and that will be another problem to thinker who want to taxing bitcoin.

and in my opinion taxing bitcoin is the core problem for govement, this problem that make bitcoin banned to goverment because there still no way to taxing it. so until that problem still unsolved many country will ban bitcoin

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