Topic: Two things are certain: Bitcoin and Taxes - page 7. (Read 7445 times)

With bitcoin around I am not really sure if Taxes are certain anymore. I remember a lot of memes around the net when the panama papers leak were happening and even someone here was posting memes like "Panama papers leak , bitcoin user not affected" . And this was so even before bitcoin. The only thing which is sure is only death.

I really dont get what you are talking about?  it makes no sense, why would anyone use or adopt a cetral bank crypto?

what is the country you life in? i envy you. i always enjoy to learn something new and maybe i would visit and lern something about the culture.

Well, I did not pay a dime because there are no taxes on bitcoin in my country and even if there was I doubt most of us would, You pay taxes on goods but with something you can hold like bitcoin I don't think it will be fair if they add a every year tax. That's my opinion.

The Bank of England studied the advantages of it issuing its own Bitcoin-like digital currency. It found using the currency could increase the United Kingdom GDP by $80 billion because it would reduce interest rates and financial transaction charges.

The study doesn't mention tax, but a Bank of England coin would probably make it easier to collect it. On the other hand it's not likely a Bank of England coin could destroy Bitcoin, so Bitcoin users would be unaffected.

https://cointelegraph.com/news/digital-currencies-like-bitcoin-could-increase-uk-gdp-by-80-billion

I think the OP may need to put a little less "conspiracy sugar" in his morning coffee.

The "big institutions" can create all the blockchains they want with all the taxes and government oversight they want... and the various governments of the world can do the same... and everyone can feel free to ignore them and continue using Bitcoin (or whatever new and improved cryptocurrency that comes along) that remains decentralised and without the taxes etc.

Bitcoins don't fall into your wallet from heaven.You either buy them with your cash/debit cards or earn them.In the first case,you already are paying to your banks as a service charge for the purchase,in the late part,you're still paying the exchanges to liquidate the coins which is "service charged" for sure.Those exchanges don't run illegally,they indeed pay taxes.

You are not getting the full picture. Just because "federalgovermentcoin" gets released, doesn't mean people will stop supporting bitcoin, to the contrary, bitcoin will be even a stronger niche for those that want to escape government control potentially pushing the price to the actual moon , so please don't talk nonsense and think next time.

of course there is no direct tax implemented in bitcoin. this is the same with fiat. nobody cuts a piece of your money and sends it to the government. but if you sell an item then in the price is a tax included. this does not depend on the currency. if you do not do it then the state will eventually find out and you get fined or worse. the same goes for income, where you have once a year tell the government how much you earned. if they want then they can look further into it. and this is where the problems usually start. 

We all know about the Governments of this world never accepting the idea of anonymity. Through Bitcoin, we can finally be free but it won't take long. I am surprised they didn't take Bitcoin over iet, but I guess they will A.S.A.P.

The only thing bitcoin needs at the governments are they allow bitcoin and maybe bring a tax, a small one. Otherwise its better stay the way it is, no one will declare their bitcoin if they think to tax them above the profit people may take. I doubt countries can really control all bitcoiners portfolio and tax them, bitcoin is freedom currencie, if that ends bitcoin value should hit 0.

i agree with franky1 on almost all points.
funny how people think taxes work somehow differently with bitcoin. also some seem to know nothing about taxes at all.
i can just advice you to educate yourself, since not knowing is no excuse if the law knocks on your door.
 

not really.
it doesnt matter where or how the funds are stored. if they want to tax you, they can.

even if you put all of your families funds into a trust(multisig is bitcoin equivelent) or spread each families funds into 2000 different accounts(addresses)
when you try spending them on real world items/property, your stung. then its up to you to investigate yourself or face a random large fine amount that they have pulled out of thin air.
its how they work. if they see you are suppose to be pennyless but find out you drive a nice car. they then look at not only the car but everything.
by charging a guy a few hundred dollars to visit you and take inventory of everything you own.
and then put a magic number against it to say this must be your income to be able to afford these 'luxuries' ..
they then add on the costs of this inventory gathering exercise and add that onto the bill you owe.
you then have to prove the opposite by showing how you could legitimately get all of those 'luxuries', while they sit back and let you dig your own grave, or wait for you to cut them a cheque

I think if bitcoin could be given tax Government must work extra hard because each person can have many addresses right ? so even though the government has know one of their address. they could make a manipulation. so that they will be spared from the tax? I think it will be difficult for the government to regulate this.

they wont take tax from bitcoin.directly.
but they will treat is as they do any foreign currency.

EG
if your european, and you work for dollars. keeping it in an american bank account(imagine like keeping bitcoin as bitcoin) the European tax authorities wont do much. but as soon as you convert it to euro's or try spending it in europe. Bam, income tax

if your european, and you invest in an american company. keeping it in an american sharebroker account(imagine like keeping bitcoin as bitcoin) the European tax authorities wont do much. but as soon as you convert it to euro's. Bam, capital gains tax

if your european, and get funded via another currency, even if you find ways to pay your landlord, grocery store and other things in that foreign currency, if they notice you registered a new house, car, or other modest priced item, Bam civil investigation and fine.

the only way to avoid red flags for doing normal things. is to be fiat rich in the first place, then nothing normal will look out of place
having money gives you loop holes.
EG having funds in a bank, writing a cheque but then cancelling it before the recipient can cash it is fine
not having funds in a bank, writing a cheque that bounces, is nt fine
yet the recipient is victimised the same way.(not getting paid)

ordering something on ebay, paying for it but then requesting a chargeback, is fine
ordering something on ebay, and just not paying, is not fine.
yet the recipient is victimised the same way.(not getting paid)

At my country there are not yet rules for bitcoin and another cryptos coins, the users of bitcoin is still low too. I think it will need much time until the government take tax from bitcoin.

governments dont need to care about who paid you, or need to care about how much you were paid to start a civil recovery process on you (tax fine)

there are many non-blockchain ways to red flag someone. for instance
if they see someone applying for a mortgage, but have filed tax forms to say they have no income... red flag
but if they see someone buying a house outright, but have filed tax forms to say they have no income... red flag
seeing someone apply for car insurance on a modest priced car. red flag
poor people cannot really afford to maintain a low priced car with no income. so if governments see you driving a car.. red flag
even things like passports and plane tickets.. red flag
their bank account statement shows funds moving in and out that technically should not exist to such a poor person

then all they need to do is make a court order to get you to investigate yourself, where you have to provide proof of payment, etc as to how you were able to maintain a less than poor lifestyle while being poor. while they just sit back and work out how much to fine you to settle their minds. or how much time to put you in jail if they drum up a story that you got funds through criminal activity. whereby you are then really pressured to prove where funds came from including proving it was 'legit'

this is why so many poor people get hit with tax fines.. because its easy to spot a poor person with money then it is for a rich person.

these government tactic end up making poor people paranoid.
EG
even going so far as having no insurance so that they really really need to be watching what they do when they drive.
concentrating harder to not get a speeding ticket, parking ticket, to avoid red flags about a vehicle.
yes you can register a car to a "trust" or offshore entity. but u cant get car insurance on a trust.

cant have any registered property or insure your house/property
ending up as a nomad living in squats (ref: amir taaki as prime example)

Impossible.  You don't know shit about bitcoin if you say such things.

thats true, people like to have control of their own money so they will definitely choose bitcoins instead of a coin that is created by government

The government will un doubtfully somehow figure out how to tax all crypto currencies.