Bitcoin Forum
June 20, 2024, 02:02:15 PM *
News: Voting for pizza day contest
 
   Home   Help Search Login Register More  
Pages: [1] 2 »  All
  Print  
Author Topic: Tax system slow to adapt to digital economy’s rise  (Read 1743 times)
edward222 (OP)
Full Member
***
Offline Offline

Activity: 164
Merit: 100


View Profile
December 08, 2015, 10:30:58 AM
 #1

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.
NorrisK
Legendary
*
Offline Offline

Activity: 1946
Merit: 1007



View Profile
December 08, 2015, 08:29:09 PM
 #2

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.
countryfree
Legendary
*
Offline Offline

Activity: 3052
Merit: 1047

Your country may be your worst enemy


View Profile
December 08, 2015, 11:46:38 PM
 #3

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.

I used to be a citizen and a taxpayer. Those days are long gone.
Amph
Legendary
*
Offline Offline

Activity: 3206
Merit: 1069



View Profile
December 09, 2015, 08:06:09 AM
 #4

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
Ekanenf
Full Member
***
Offline Offline

Activity: 290
Merit: 100


View Profile
December 09, 2015, 09:14:59 AM
 #5

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
*
Offline Offline

Activity: 3206
Merit: 1069



View Profile
December 09, 2015, 10:59:18 AM
 #6

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
Mickeyb
Hero Member
*****
Offline Offline

Activity: 798
Merit: 1000

Move On !!!!!!


View Profile
December 09, 2015, 12:17:22 PM
 #7

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!
helloeverybody
Legendary
*
Offline Offline

Activity: 1008
Merit: 1000


★YoBit.Net★ 350+ Coins Exchange & Dice


View Profile WWW
December 09, 2015, 12:43:20 PM
 #8

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
*****
Offline Offline

Activity: 798
Merit: 1000

Move On !!!!!!


View Profile
December 09, 2015, 01:20:01 PM
 #9

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!
BillyBobZorton
Legendary
*
Offline Offline

Activity: 1204
Merit: 1028


View Profile
December 09, 2015, 07:18:14 PM
 #10

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.
Decoded
Legendary
*
Offline Offline

Activity: 1232
Merit: 1030


give me your cryptos


View Profile
December 09, 2015, 09:36:59 PM
 #11

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.

looking for a signature campaign, dm me for that
HabBear
Hero Member
*****
Offline Offline

Activity: 1106
Merit: 637


View Profile WWW
December 10, 2015, 06:27:54 AM
 #12

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.
NorrisK
Legendary
*
Offline Offline

Activity: 1946
Merit: 1007



View Profile
December 10, 2015, 07:57:48 AM
 #13

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.
Gaswuwade
Member
**
Offline Offline

Activity: 97
Merit: 10


View Profile
December 10, 2015, 08:17:50 AM
 #14

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.
justspare
Hero Member
*****
Offline Offline

Activity: 1022
Merit: 538



View Profile
December 10, 2015, 08:28:10 AM
 #15

I don't really understand how they are going to tax Bitcoin. Are they going to like tax the transactions, there is already miners fees so they are going to really screw up Bitcoin if they do this.
justspare
Hero Member
*****
Offline Offline

Activity: 1022
Merit: 538



View Profile
December 10, 2015, 08:29:20 AM
 #16

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.

I doubt that they will tax Bitcoin. If they do, how are they going to do it?
Amph
Legendary
*
Offline Offline

Activity: 3206
Merit: 1069



View Profile
December 10, 2015, 11:13:57 AM
 #17

I don't really understand how they are going to tax Bitcoin. Are they going to like tax the transactions, there is already miners fees so they are going to really screw up Bitcoin if they do this.

you mean that they will tax any transaction regardless of the owner? and how they can point out who will pay those transaction?

there is no way they cna do that, and for this reaosn there will be a mass evasion in task, it's the reaosn why GOVs hate bitcoin
Mickeyb
Hero Member
*****
Offline Offline

Activity: 798
Merit: 1000

Move On !!!!!!


View Profile
December 10, 2015, 02:16:16 PM
 #18

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.

This is exactly what I had in mind. You have a deadline and you declare everything that can must be declared by this certain deadline. Of course, for everything there are exchange rates and you convert to the local currencies in order to pay taxes. Simple as that!
ultimatesky
Hero Member
*****
Offline Offline

Activity: 714
Merit: 500

SkyFall


View Profile
December 10, 2015, 03:02:36 PM
 #19

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.

This is how it usually works, but only if you actually do you taxes and report every income you've made.
If you are going to report bitcoins as an income it's best to come clean with it all and not keep things behind your back, if they find out you'll have to pay a fine.
Amph
Legendary
*
Offline Offline

Activity: 3206
Merit: 1069



View Profile
December 10, 2015, 03:25:22 PM
 #20

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.

that's convenient, here they tax here already above 5k euro and above 15k for funds that are held abroad

also when talking about bitcoin, one must consider two cases, one where the tax are on the possible capital gain from tradin, which are very high, here around 26%,and the other is for mining, which are different, and should be lower
Pages: [1] 2 »  All
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!