Topic: Not Declaring Bitcoin Income - page 2. (Read 7598 times)
I think various countries are making law on Bitcoin for acceptance and they are appling tax on Bitcoin income. If we are not declaring Bitcoin income it means we are going against of country law and government can collect tax on our income with penalty.
Can your government really be able to track if you never declared gains made from Bitcoin transactions?
Your government, like every government in the world is monitoring all bank transactions, that's enough for now. With time and effort, I'm sure a government could also monitor the blockchain, but I guess this isn't a priority as of today. The European Union is already talking about it, though.
I hope they include deduction of this taxes in exchanges. So it will be easy for us to do taxes. But if that can't be done, I hope they release guidelines.
I don’t think that bitcoin itself is traceable not unless the government will hire a people that will monitor on the system. But actually for me personally, i don’t think that it is necessary for the government to trace the investors to collect taxes from them. All they need to do is to for the bitcoin to be converted into fiat because most of the bitcoin users do that converting btc to fiat since there are limited establishment still that will accept bitc as payments.
Bitcoin is a virtual currency in the world. In the world, every country will be thinking about bitcoin to make some rules in a country. Apart from this, If you want to convert with fiat, there is need to pay income tax in your country.
Here in our place government does not care about the profit of anyone from btc, bitcoin is not legal but also not illegal so asking tax from bitcoin's community here is not existing. But if the government will do that someday and want to monitor the profit of someone I think the best way is to create a centralized exchange and don't let decentralised exchange control the area. This is the only way because government has no power to all decentralised system.
Yeah you're right it's the only way for the government to provide taxes and give control to bitcoin users. make an exchange centralization, where verification of data id and so on will be required and bitcoin users will probably do that because they certainly have to convert to fiat to pay for their needs, but for now it seems the government has not done that yet or have doesnt cared about it yet.. Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.
However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.
I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?
I personally also never declare my earnings from Bitcoin. I behave like this because I know the government in my country does not like Bitcoin and if I can get revenue from Bitcoin definitely use of Bitcoin will be increasingly prohibited. And of course, I do not want if Bitcoin is getting banned because I am looking for daily income from Bitcoin. However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.
I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?
It all depends on whether the government controls the cryptoexchange, which is in their jurisdiction.
Yes. Most will not declare it as it is also not being traced by the government. For now, since the government has not yet imposed specific tax on Bitcoins, the tax is paid through personal income tax. Which is filed and declared in an honest basis. Bitcoin earning is not only the one being evaded, but mostly all the business owners. There are a lot of ways to evade tax.
In my opinion. the government can track all income and transactions of each of its people because their money is stored in the bank allowing the authorities to check all transactions if they want to find out. but to date in my country, nobody has declared their earnings from bitcoin because it's still not legal.
In my opinion. the government can track all income and transactions of each of its people because their money is stored in the bank allowing the authorities to check all transactions if they want to find out. but to date in my country, nobody has declared their earnings from bitcoin because it's still not legal.
If it really requiring in your respective country then for sure they will find a way for those people who are earning thru bitcoin they can actually make list of it just like if getting the data in the exchanges, so it it is better to declare it before it would be too late for us.
In my opinion. the government can track all income and transactions of each of its people because their money is stored in the bank allowing the authorities to check all transactions if they want to find out. but to date in my country, nobody has declared their earnings from bitcoin because it's still not legal.
I will surely not declare all my earning here because this is how supposed to be, bitcoin is decentralized and Government will surely not know how much your profit is. Well i can easily convert my btc into fiat.
Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.
However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.
I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?
However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.
I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?
all cryptocurrency transactions can be checked by everyone including the government
in a ledger called blockchain, but because the blockchain system hides the sender and seller's personal data
so maybe the Government can only see the amount and time of the transaction only.
It is difficult for the government to find personal data in the blockchain system.
government needed tax but its not compulsory to declaring bitcoin income and its not a crime so its not necessary.
I think my country doesn't care anyway if any individual here in our country owns many btc. As today, we are free to earn as much as we could without declaring it. I believe that it would 2-3 years before our government will take legal actions because the increase of btc users here is very slow.
I am sure in my country the Government cannot trace the people who benefit from the Bitcoin transactions. Bitcoin is highly transparent and very difficult to trace when we have made transactions with Bitcoin.
Every government can trace Bitcoin transaction if they will regulate it by controlling the local exchanges in which we convert our Bitcoin to fiat. Our local exchanges is KYC compliant in which they are required by the government to screen out their clients by requiring them to submit government issue ID and legal documents in which if they will not follow then of course the local exchange cannot allow to operate. Therefore everytime we will convert Bitcoin to fiat it will be monitor by the government specially if Bitcoin is legal in the country.
That is why Government wants to regulate cryptocurrency, they say they want everyone who trades in a specific country to be safe from money laundering and other criminal activities that has a high possibility in the future. But behind the major purpose is the Government will take part of controlling cryptocurrency trading and through regulation they could implement a tax.
Here in our place government does not care about the profit of anyone from btc, bitcoin is not legal but also not illegal so asking tax from bitcoin's community here is not existing. But if the government will do that someday and want to monitor the profit of someone I think the best way is to create a centralized exchange and don't let decentralised exchange control the area. This is the only way because government has no power to all decentralised system.
My country is far behind in matters related to cryptocurrencies. There is no law that regulates the purchase or sale, therefore it is difficult to declare bitcoin incomes here, so I do not think there is a crime to pursue, especially when my income derived from the cryptos are very small.
I think bitcoin is new, it will take time for all the countries to make some strict rules for all countries especially for any third-word country.
I guess the state will not be able to track our individual interest transactions, we can only track wallet transactions and can not track the owners of the accounts, the state can only get taxes when we exchange bitcoins with fiat money, and the use of bitcoin ATM
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