Tax system slow to adapt to digital economy’s rise - page 2.

Gaswuwade

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Activity: 97

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Quote from: Amph on December 09, 2015, 05:59:18 AM

Quote from: Ekanenf on December 09, 2015, 04:14:59 AM

Quote from: Amph on December 09, 2015, 03:06:09 AM

Quote from: countryfree on December 08, 2015, 06:46:38 PM

Hey, let's not complain!
It will not last though. I've read many articles about how the taxmen are finding ways on how to properly check and tax all the people getting a little income from Uber or Airbnb. Income in BTC will be much harder to tax happily for us.

it will be impossible, when bitcoin will be adopted on a large scale, they can not track anyone who is using bitcoin directly, especially for small thing and especially if done in real life with someone else that want to avoid tax and he is selling used stuff

But bitcoin is more traceable than cash. The authority just need supercomputer and good database software, then they can link most transactions with individuals.

how? if i'm only moving funds from one address to another, how they can link a transaction to my name?

as long as you don't connect your address with a shipping address, bitcoin is not traceable

If you use the coins for one online transaction and deliver the goods to your home, the taxman can ask the company to reveal your identity and link all your previous transactions.

NorrisK

legendary

Activity: 1946

Merit: 1007

Quote from: Mickeyb on December 09, 2015, 08:20:01 AM

Quote from: helloeverybody on December 09, 2015, 07:43:20 AM

How do you tax something that changes value so often? Surely the only time you would pay tax would be when/if you cash out?

Easily! You just take a current exchange rate of the moment of the taxes being due or at the moment of making a transaction that has made you profit, etc!

Just like the US citizens must pay taxes if they had earned their salary in France and in Euros!

In the Netherlands it is actually quite easy. They charge you 4%* (1.6% after all deductions) on any value you have above 25,000 euro on January 1 of each year.

This is independant of any gains or losses. They use 4% as an expected gain on your holdings and charge you for that.

In practice, this means that you will have to declare the value of your coins on January 1 and potentially pay taxes if your total holdings (including other savings/investments) go above 25,000

*I believe the rates they charge are lowered a bit next year under a certain threshhold, but the idea remains the same.

HabBear

hero member

Activity: 1106

Merit: 638

Quote from: Decoded on December 09, 2015, 04:36:59 PM

I really hope so too. I really don't think bitcoin should be taxed. It's a p2p currency after all. I really shouldn't call bitcoin s currency. To volatile. It's more of an asset.

Real estate is a "p2p" investment, and it's taxed...why not bitcoin?

Of course bitcoin should be taxed! It should be treated as any other currency or investment is treated. Now, of course no one wants to pay taxes so from that perspective I understand your motivation.

My point is - what makes bitcoin any different than any other investment or currency?

We all want the world to accept bitcoin as a legit currency. We can't expect that to happen if we don't want it to be subject to the same laws that all legit currencies are subjected to.

Decoded

legendary

Activity: 1232

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give me your cryptos

I really hope so too. I really don't think bitcoin should be taxed. It's a p2p currency after all. I really shouldn't call bitcoin s currency. To volatile. It's more of an asset.

BillyBobZorton

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Activity: 1204

Merit: 1028

Quote from: Ekanenf on December 09, 2015, 04:14:59 AM

Quote from: Amph on December 09, 2015, 03:06:09 AM

Quote from: countryfree on December 08, 2015, 06:46:38 PM

Hey, let's not complain!
It will not last though. I've read many articles about how the taxmen are finding ways on how to properly check and tax all the people getting a little income from Uber or Airbnb. Income in BTC will be much harder to tax happily for us.

it will be impossible, when bitcoin will be adopted on a large scale, they can not track anyone who is using bitcoin directly, especially for small thing and especially if done in real life with someone else that want to avoid tax and he is selling used stuff

But bitcoin is more traceable than cash. The authority just need supercomputer and good database software, then they can link most transactions with individuals.

It's really difficult to keep track of all the stuff now, imagine in the future when transaction volume is x1000. Too much volume, way too many new addresses being created, and improved privacy will be coming soon. It's pretty much impossible in the long run.

Mickeyb

hero member

Activity: 798

Merit: 1000

Move On !!!!!!

Quote from: helloeverybody on December 09, 2015, 07:43:20 AM

How do you tax something that changes value so often? Surely the only time you would pay tax would be when/if you cash out?

Easily! You just take a current exchange rate of the moment of the taxes being due or at the moment of making a transaction that has made you profit, etc!

Just like the US citizens must pay taxes if they had earned their salary in France and in Euros!

helloeverybody

legendary

Activity: 1008

Merit: 1000

★YoBit.Net★ 350+ Coins Exchange & Dice

How do you tax something that changes value so often? Surely the only time you would pay tax would be when/if you cash out?

Mickeyb

hero member

Activity: 798

Merit: 1000

Move On !!!!!!

Quote from: NorrisK on December 08, 2015, 03:29:09 PM

Quote from: edward222 on December 08, 2015, 05:30:58 AM

Credit to: Corruption News : Tax system slow to adapt to digital economy’s rise

Quote

LOST REVENUE:A lack of regulations on taxing cross-border Web-based content and services providers puts their local peers at a disadvantage, Ernst & Young said

The nation’s tax system is relatively behind developed markets in adapting to the proliferation of the digital economy, which has resulted in lost revenues for the government as the sector grows, consulting firm Ernst & Young said yesterday.

The audit services giant said that while China’s Alibaba Group Holding Ltd (阿里巴巴), which recorded sales of US$9.32 billion during last year’s Nov. 11 “Singles Day” promotions, has set an example for the rapid development of e-commerce, the digital economy encompasses many other less straightforward business models than purchasing goods online, which pose challenges for tax authorities worldwide.

Hope they will not come after Bitcoin companies.

They will very likely come after those companies. If there is tax money to be made, rest assured, they will find a way to get it.
Their problem is however, to get a good taxing system in place that is reliable and that can be checked.

Exactly! They will surely come after us, don't worry. If there is money to be robbed from lions in Africa they would be after these lions, I am sure of it.

Just give them some time. I guess this is what they call a regulation!

Amph

legendary

Activity: 3248

Merit: 1070

Quote from: Ekanenf on December 09, 2015, 04:14:59 AM

Quote from: Amph on December 09, 2015, 03:06:09 AM

Quote from: countryfree on December 08, 2015, 06:46:38 PM

Hey, let's not complain!
It will not last though. I've read many articles about how the taxmen are finding ways on how to properly check and tax all the people getting a little income from Uber or Airbnb. Income in BTC will be much harder to tax happily for us.

it will be impossible, when bitcoin will be adopted on a large scale, they can not track anyone who is using bitcoin directly, especially for small thing and especially if done in real life with someone else that want to avoid tax and he is selling used stuff

But bitcoin is more traceable than cash. The authority just need supercomputer and good database software, then they can link most transactions with individuals.

how? if i'm only moving funds from one address to another, how they can link a transaction to my name?

as long as you don't connect your address with a shipping address, bitcoin is not traceable

Ekanenf

full member

Activity: 290

Merit: 100

Quote from: Amph on December 09, 2015, 03:06:09 AM

Quote from: countryfree on December 08, 2015, 06:46:38 PM

Hey, let's not complain!
It will not last though. I've read many articles about how the taxmen are finding ways on how to properly check and tax all the people getting a little income from Uber or Airbnb. Income in BTC will be much harder to tax happily for us.

it will be impossible, when bitcoin will be adopted on a large scale, they can not track anyone who is using bitcoin directly, especially for small thing and especially if done in real life with someone else that want to avoid tax and he is selling used stuff

But bitcoin is more traceable than cash. The authority just need supercomputer and good database software, then they can link most transactions with individuals.

Amph

legendary

Activity: 3248

Merit: 1070

Quote from: countryfree on December 08, 2015, 06:46:38 PM

Hey, let's not complain!
It will not last though. I've read many articles about how the taxmen are finding ways on how to properly check and tax all the people getting a little income from Uber or Airbnb. Income in BTC will be much harder to tax happily for us.

it will be impossible, when bitcoin will be adopted on a large scale, they can not track anyone who is using bitcoin directly, especially for small thing and especially if done in real life with someone else that want to avoid tax and he is selling used stuff

countryfree

legendary

Activity: 3066

Merit: 1047

Your country may be your worst enemy

Hey, let's not complain!
It will not last though. I've read many articles about how the taxmen are finding ways on how to properly check and tax all the people getting a little income from Uber or Airbnb. Income in BTC will be much harder to tax happily for us.

NorrisK

legendary

Activity: 1946

Merit: 1007

Quote from: edward222 on December 08, 2015, 05:30:58 AM

Credit to: Corruption News : Tax system slow to adapt to digital economy’s rise

Quote

LOST REVENUE:A lack of regulations on taxing cross-border Web-based content and services providers puts their local peers at a disadvantage, Ernst & Young said

The nation’s tax system is relatively behind developed markets in adapting to the proliferation of the digital economy, which has resulted in lost revenues for the government as the sector grows, consulting firm Ernst & Young said yesterday.

The audit services giant said that while China’s Alibaba Group Holding Ltd (阿里巴巴), which recorded sales of US$9.32 billion during last year’s Nov. 11 “Singles Day” promotions, has set an example for the rapid development of e-commerce, the digital economy encompasses many other less straightforward business models than purchasing goods online, which pose challenges for tax authorities worldwide.

Hope they will not come after Bitcoin companies.

They will very likely come after those companies. If there is tax money to be made, rest assured, they will find a way to get it.
Their problem is however, to get a good taxing system in place that is reliable and that can be checked.

edward222

full member

Activity: 164

Merit: 100

Credit to: Corruption News : Tax system slow to adapt to digital economy’s rise

Quote

LOST REVENUE:A lack of regulations on taxing cross-border Web-based content and services providers puts their local peers at a disadvantage, Ernst & Young said

The nation’s tax system is relatively behind developed markets in adapting to the proliferation of the digital economy, which has resulted in lost revenues for the government as the sector grows, consulting firm Ernst & Young said yesterday.

The audit services giant said that while China’s Alibaba Group Holding Ltd (阿里巴巴), which recorded sales of US$9.32 billion during last year’s Nov. 11 “Singles Day” promotions, has set an example for the rapid development of e-commerce, the digital economy encompasses many other less straightforward business models than purchasing goods online, which pose challenges for tax authorities worldwide.

Hope they will not come after Bitcoin companies.

Topic: Tax system slow to adapt to digital economy’s rise - page 2. (Read 1764 times)