Topic: Is Taxing Bitcoins Possible? - page 8. (Read 741 times)
It is theoretically possible, but it is quite hard to trace identities of bitcoin holders or positively ID holders with their personal details. Therefore, it is hard to implement taxation protocol with bitcoins. Moreover, high end privacy for bitcoin holders is implemented..so all the more reason to say that it is practically difficult for any institution or government agencies to identify the bitcoin asset of a holder of an account.
It is decentralized in the first place and we know that tax is can be generate by the government or institution. I don't think that bitcoin can be taxed by these government because they cannot control it. I think that is why are doubtful about this cryptocurrency because if they cannot control it the result will be unpredictable too, i guess they are taking taxes on the wallets we are using there are some part on fees that government will receive.
Sorry I'm a new person in bitcoin world, what is an IGR? I do not understand, I hope you as a thread maker can tell me about IGR, I am very curious.
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.
Governments dont tax financial transactions (normally), they tax capital gains (profits) or income (from traders making an income). Same rules apply to cryptocurrencies. And normally its on you as a law abiding citizen to follow your country's tax law and declare your gains/income. If you dont, and they find out, big fines and possible imprisonment. So make as much money as you like within cryptocurrency world, as soon as you exit you will be liable to tax. Buy services direct with Bitcoin might help stay under the radar, or full under the threshold for investigation.
I think that they have means to detect your unpaid taxes from capital gains or income: look at the US IRS which expressly asked exchanges to pass all the relevant transaction information to them, as well as currently enforced KYC (know your customer) regulations in many countries. The only way to get undetected is to engage in exchanges of bitcoin into fiat with private parties (from localbitcoins, for example)
Also I am reading news that services directly paid with bitcoins are being subjected to VAT tax in many countries, or at least it is planned so it will be the case in near future. So the window of opportunity may be closing here.
Seems that localbitcoins will shortly remain the only option available...
Governments dont tax financial transactions (normally), they tax capital gains (profits) or income (from traders making an income). Same rules apply to cryptocurrencies. And normally its on you as a law abiding citizen to follow your country's tax law and declare your gains/income. If you dont, and they find out, big fines and possible imprisonment. So make as much money as you like within cryptocurrency world, as soon as you exit you will be liable to tax. Buy services direct with Bitcoin might help stay under the radar, or full under the threshold for investigation.
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.
Giving tax for being bitcoin holder is not possible as nobody use their own names or personal details for holding bitcoins in their wallet cryptos give high end privacy for their coin holders and it is not practical for any government to find out how much btc a person is holding so giving tax for holding btc is not something which is practical.
Im not an expert too, but in my point of view its almost imposible to do that. Cause is untracable right ? if you dont know who hold it can you tell that people to pay the tax, for example i live in the usa where tax is mandatory but goverment have no proof that i have bitcoin. can they taxing that ? Spoiler allert, if you not tell them that you had, they cant.
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.
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