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Title: Will governments clam down on individual btc users? Post by: biggbox on June 21, 2016, 05:06:03 AM The governments are losing tax revenues from retail btc investors. BTC sellers do not see the need to declare their income from BTCs.
But as btc gain momentum, will governments demand exchanges for particulars of retail or small time investors to comply for tax legislations? Title: Re: Will governments clam down on individual btc users? Post by: ObscureBean on June 21, 2016, 05:24:26 AM Eventually they will. There is no way they'll allow Bitcoin to grow past a certain threshold without a proper leash. If Bitcoin was a standalone entity separate from the system, they wouldn't be able to that. Unfortunately we are very much part of the system, we draw our support from infrastructure owned and maintained by the system.
https://www.irs.gov/pub/irs-drop/n-14-21.pdf Title: Re: Will governments clam down on individual btc users? Post by: Whosdaddy on June 22, 2016, 05:02:53 PM Tax system differs country to country. In general, receiving as payment for goods or services is taxable income in most common scenario. As long as you are not converting into fiat and either holding or using it, will not trigger taxation in my opinion.
Title: Re: Will governments clam down on individual btc users? Post by: biggbox on June 22, 2016, 05:05:23 PM Tax system differs country to country. In general, receiving as payment for goods or services is taxable income in most common scenario. As long as you are not converting into fiat and either holding or using it, will not trigger taxation in my opinion. So if we use btc to buy lots of amazon or ebay vouchers, and loadable debit cards, are we able to circumvent the taxs since we are not touching fiat. Title: Re: Will governments clam down on individual btc users? Post by: yayayo on June 22, 2016, 05:46:41 PM Governments will do almost everything to maintain / increase tax revenue of course. They will clamp down on individual BTC users if they expect a positive return from it. The bigger the user base of an exchange, the more likely its users will be subjected to taxation related surveillance.
Personally I have no sympathy for BTC sellers and I think they deserve some punishment, because selling BTC for fiat money is an act of supreme stupidity... :D Why do you want to own fiat, when you already have the best money in the world? Use your BTC for direct purchases of goods and services and you'll have no problems with taxation at all. ya.ya.yo! Title: Re: Will governments clam down on individual btc users? Post by: damiano on June 22, 2016, 05:48:35 PM The governments are losing tax revenues from retail btc investors. BTC sellers do not see the need to declare their income from BTCs. But as btc gain momentum, will governments demand exchanges for particulars of retail or small time investors to comply for tax legislations? P2P trades, how on earth are they going to crack down on that? By the time they try their will be decentralized methods of exchange. In fact I know a few alt markets you can do it now. They do not stand a chance. Title: Re: Will governments clam down on individual btc users? Post by: Kprawn on June 22, 2016, 06:24:34 PM It's already being done my friend.... Governments in certain countries has already forced BTC exchanges to adhere to KYC/AML regulations and this unmasked some anonymous users. Do not forget that
most retailers work through payment processors, so tracking can be easily done through these services. You will not sign up with these services without revealing your identity. Once they have your personal details, they just link that to your tax details and everything operates like normal, as if there were no anonymity at all. ::) Title: Re: Will governments clam down on individual btc users? Post by: Btcvilla on June 22, 2016, 06:28:00 PM It's going to be hard for the government to tax bitcoin from day to day to use.
But when you sell, they already tax, I can see them taxing retailer to. Unlike the average user here, I think people should be tax at the standard rate. Since taxes pay for things you relay on, like the highway system. |