Topic: Not Declaring Bitcoin Income - page 4. (Read 7575 times)
I will not declare my income from BITCOIN in my ITR (Income Tax Return) voluntarily because here in my country government is not yet requiring it. They have not yet find a way to taxed cryptocurrency and I hope that they will not for a very long time. I want to enjoy the fruit of my labor from BITCOIN.
After upcoming worldwide regulations people will HAVE to declare it. Sad but true
In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.
They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.
If you are using an offshore bank account, then the chances are quite low (unless the amount is very big). There are protocols in place to get information from foreign banks and it is quite complicated. The authorities are not going to use this route, unless the amount is quite large.
Now every bank is tracing the bitcoin transactions because many people are exchanging their bitcoins in a local exchange into their fiat currency. It is very easy for banks to easily identify those transactions.
In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.
They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.
If you are using an offshore bank account, then the chances are quite low (unless the amount is very big). There are protocols in place to get information from foreign banks and it is quite complicated. The authorities are not going to use this route, unless the amount is quite large.
Yes, surely. They could track your transactions relatively easily, but nobody cares about this now too much.
Well i think because there are no employees or other terms related to it. Income also would mean it comes from the government and you have certain id to track your employment. Our bank stated that they support btc as a means of transaction but i not as payment so i guess those are different. I tried stating btc as my source of income but the embassy did not accept so i have to show them my wallet and many sites to open just to give them some clarifications.
It purely depends upon your government and bank. If you convert the bitcoin to local fiat and that amount would be transfer to your bank, if the amount is less there is no issues, at the same time the amount is high you have to answer. The bank should watch all of your transactions if it exceeds beyond the limit.
Well i think because there are no employees or other terms related to it. Income also would mean it comes from the government and you have certain id to track your employment. Our bank stated that they support btc as a means of transaction but i not as payment so i guess those are different. I tried stating btc as my source of income but the embassy did not accept so i have to show them my wallet and many sites to open just to give them some clarifications.
It purely depends upon your government and bank. If you convert the bitcoin to local fiat and that amount would be transfer to your bank, if the amount is less there is no issues, at the same time the amount is high you have to answer. The bank should watch all of your transactions if it exceeds beyond the limit.
Unless you convert your Bitcoin into fiat and transfer it to your bank. Government isn't involved at all. You are taxed on the gain you made that are calculated through fiat amount.
That is right, if your money was already in a bank then we don't have a choice but the bank will automatically deduct tax on it, so for me just think twice what you will gonna do with your income. What would you expect on the things that government do?They wont really make any chances for someone to skip to their obligations or which they do saw that they can able to make money too. We can say blockchain is on public and can be traced up but this would still be a hard thing and this is why most governments doesn't really like bitcoin after all.They do know that tracing such thing would be difficult.
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?
Government can track your transaction because we know that it is traceable on blockchain, if you owns that wallet and that wallet has your own name attached to it. but their are wallets that you can withraw and atm's to change bitcoin to fiat money. Governments in your country are sure using bitcoin to earn a lot for themselves, it has a high chance before you joined bitcoin, they know bitcoin already and they use it for a long time, Governments will sure not slip every opportunity to make income not for their country but for their own profit.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?
Just like here our place luckily my government is quite enough on bitcoin now they did not implement any laws regarding bitcoin and all cryptocurrencies here. Besides they are recognized bitcoin as a kind of currency here and that case they are warned us that to be careful and avoid of being Ponzi scheme with this currency because they have nothing to do on this.
Luckily, any government is not capable of having a full control when it goes about BTC.
There is no tax until we keep using bitcoin as bitcoin but still it is not possible yet so we need to convert our bitcoin into fiat so bank is essential so our earning will be recorded so we must need to pay taxes according to our income.
There's no need for the bank to get involved with our bitcoin income. Paying tax is essential whether bitcoin isn't recognized then the only thing that we must do for declaring our tax is to volunteer ourselves going to the tax bureau and declare your bitcoin income. They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.
They can and they can't. If you use an exchange that is sending payment through banks then for sure you are obliged to pay the tax because it is recorded to the bank's system and audit. 
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?
Government can track your transaction because we know that it is traceable on blockchain, if you owns that wallet and that wallet has your own name attached to it. but their are wallets that you can withraw and atm's to change bitcoin to fiat money. Governments in your country are sure using bitcoin to earn a lot for themselves, it has a high chance before you joined bitcoin, they know bitcoin already and they use it for a long time, Governments will sure not slip every opportunity to make income not for their country but for their own profit. 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?
In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.
They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.
I find it too risky not to declare it. If you spend a lot of money with cryptos and link your name to a bitcoin address, you can also draw conclusions
about your income and then it is not far until the state comes to you. Bitcoin is not anonymous as it is mistakenly assumed.
about your income and then it is not far until the state comes to you. Bitcoin is not anonymous as it is mistakenly assumed.
Every country has its own law about declared assets and as far as I know in my country there is no crypto in that list.
Crypto is anonymous until you decide to change it on fiat money and to output on your credit card, or when you go through verification in exchange market or somewhere (than you also identify yourself).
In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.
They can track using the bank details, because banks may be asked to provide details if account is being open for btc transactions or any suspicious transactions happening regularly than those details will be forwarded to them and then you will be under scanner.
Whatever you gain from Bitcoin is not stored in any of the government records so if you are not declaring that into your income you should not have any problems.
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?
Yes the laws are not that strictly implemented right now. In fact in many countries, the laws are being made but their implementation is not upto the mark!!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?
But yes when the implementation is made strong, maybe the systems are made and being executed, the government will be able to track the never declared gains because the proper records will be made!
You don't need to pay tax if you are dealing with small amounts. If you cash out and spend it on your daily cost or buying clothes, phones, TV's etc. you are fine. But if you buy something more valuable like cars, houses and such your government will ask you where did you get it. In that case, paying taxes would be advisable. There are some tools that US government or others can use to track crypto transactions and connect them to you exchange profiles, which are verified with documents that you provided them when you registered.
https://www.chainalysis.com/
That is right, the government also allows you to have a small income, they will understand you especially if it is not a fixed income, but it depends on the country since there are really country who were so strict in tax evasion, they want you to declare all your income. https://www.chainalysis.com/
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